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Ethanol
16 July 10
Indexes boost due to high
demand
Ethanol prices in the domestic market kept the upward trend in the first
fortnight of July, even though weather conditions were favorable and the
harvest peak period in the Center-Southern of Brazil was nearing. The
boost came mainly from high demand. The holiday in São Paulo state, on
Jul. 9, led some distributors to purchase large volumes in the spot
market. Some mills, on the other hand, preferred to not operate once
they are enjoying a comfortable financial moment.
During July 5-8, the CEPEA/ESALQ Index (Sao Paulo state) for anhydrous
averaged 0.8973 real or 0.5063 dollar per liter rising 3.56 percent in
relation to the previous week. Regarding hydrous, the CEPEA/ESALQ Index
averaged 0.7724 real or 0.4358 dollar per liter, moving up 4.61 percent
compared to the previous period. Price quotes do not include taxes.
In the subsequent week, during July 12-16, the CEPEA/ESALQ Index (Sao
Paulo state) for hydrous averaged 0.8245 real or 0.4665 dollar per liter
(excluding taxes) for a increased of 6.75 percent in relation to the
previous period. Regarding anhydrous, the CEPEA/ESALQ Index averaged
0.9431 real or 0.5336 dollar per liter (excluding taxes), rising 5.1
percent in relation to the previous period.
Considering the daily index of hydrous (delivered at Paulinia city – SP
state), prices increased 13 percent from Jun. 30 to Jul. 15. This Index
is the basis for the hydrous hthanol contracts at BM&FBovespa.
Regarding price parity calculated by Cepea, during July 5-8, crystal
sugar remunerated 38 percent more than anhydrous ethanol last week in
São Paulo state. As for hydrous, the sugar advantage was 52 percent.
Comparing the two types of ethanol, anhydrous remunerated 10 percent
more than hydrous in the same period.
According to Unica (Sugarcane Industry Association), 39.6 million
sugarcane tons were crushed in the Central-Southern region up until the
first fortnight of June, volume 18.56 percent higher compared to the
same period of last year, being 2.297 million tons of sugar produced and
1.711 billion liters of ethanol, for a boost of 30.7 and 18.1 percent,
respectively.
Since the beginning of the crop, 174 million tons of sugarcane have been
processed, moving up 20.38 percent in relation to the same period last
season, which means 8.95 million tons of sugar produced and 7.19 billion
liters of ethanol, for a boost of 30.9 and 17.5 percent, respectively.
In this period, 43.34 percent of the sugarcane was allocated to sugar
and 56.66 percent to ethanol production.
Regarding exports, according to Secex (Foreign Trade Secretariat), 212
million liters of ethanol were shipped in June 2010, volume 127 percent
higher than May 2010, but 50 percent less than the amount exported in
June 2009 (420.4 million liters).
(CEPEA-BRAZIL)
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Sugar
16 July 10
Exports sustain prices
in Brazil
The processing of the 2010/11 sugarcane crop kept going full steam
ahead, nearing the peak period of the harvest in early July. Favorable
weather conditions have contributed to this scenario. In general terms,
crystal sugar production has increased significantly this season, while
prices have remained stable since early June, which is attributed to the
higher volume of crystal sugar exported over the last months.
The CEPEA/ESALQ Index of crystal sugar closed at 40.49 reais or 22.85
dollars per 50-kilo bag on Thursday, July 15, an increase of 0.71
percent in the first fortnight.
According to Unica (Sugarcane Industry Association), from Apr. 1 and
Jun. 16, sugar production was 8.95 million tons in this crop (2010/11),
volume 30.9 percent higher in relation to 2009 (6.84 million).
In general terms, the sugarcane crop of 2010/11 is expected to produce
above-average yields, according to agents. Unica estimates that from
Apr. 1 to Jun. 16, 173.66 million tons of sugar cane from the 2010/11
crop was crushed in the Center-Southern region of the country, volume
20.4 percent higher than that in the same period last year (144.26
million tons). Around 57 percent of the sugar cane was allocated to
ethanol production and 43 percent, to sugar.
Regarding exports, according to data from Secex (Foreign Trade
Secretariat), 1.92 million ton of raw sugar (VHP) was shipped, volume
12.7 percent more compared to May (1.71 million ton) and 15.7 percent
more than June 2009 (1.66 million ton). Regarding white sugar, in June,
578.78 thousand tons were exported for an increase of 38.6 percent in
relation to May (417.7 thousand tons) and almost the same of that in
June 2009 (577.08 thousand tons).
(CEPEA-BRAZIL)
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