Hydrous ethanol parity at highest since April 2016

In Brazil, Platts reports the hydrous ethanol price parity against gasoline was the highest since April 2016 last week at 76.59%. Typically, drivers start to rethink filling up with E100 once the price of ethanol goes above 70%, ethanol’s energy content versus gasoline. Sugarcane mills have been favoring sugar production and anhydrous ethanol production over hydrous ethanol production due to their higher prices, leaving availability of hydrous on the short side that has pushed prices up.