Brazilian hydrous ethanol hits price ceiling and drops 2.5%

In Brazil, Platts reports that record high hydrous ethanol prices have finally reached the limit for drivers with demand falling off and ethanol prices dropping 2.5% in turn, combined with weaker economic data released last week and a drier-than-normal March. A dry March means an early kick off for sugarcane milling that will lead to an influx of ethanol supplies into the market, helping to cool off prices that in January and February were 25% higher than the year prior.