Brazilian hydrous ethanol prices slide on expected ICMS tax cap

In Brazil, Platts reports hydrous ethanol prices in the key center-south producing region have slid by $193.67 per cubic meter to $765.29 from the highs seen in mid-April when the slow start to the sugarcane crush tightened supplies. On May 25, the Chamber of Deputies voted to cap the ICMS tax at 17% to help make ethanol more competitive with gasoline and push down ethanol prices, although the Senate still has to vote on the proposal in the next few weeks before it becomes law.