Higher spot hydrous ethanol discount to anhydrous shows concern about supplies

July 7, 2021 |

In Brazil, Platts reports spot hydrous ethanol prices are trading at a 13% discount to anhydrous in the key center-south region, slightly lower than the 14% discount that has been seen throughout much of the current 2021/22 season but much higher than the average 11% usually seen. The higher discount means that buyers are likely willing to pay more for anhydrous ethanol than usual to ensure enough supplies on hand for the 27% blending mandate with gasoline, especially during the inter-harvest period during Q1 when availability is tightest. 

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Category: Fuels

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