South-Central Brazil Ethanol Stocks Drop to 3.48 Billion Liters by March 1st

Ethanol stocks in Brazil's South-Central region continued their downward trend, even as some sugar-energy companies resumed sugarcane crushing during March. According to data released by the Ministry of Agriculture and Livestock (Mapa), producers held 3.48 billion liters of the biofuel as of March 1st. This volume represents a 22.1% contraction compared to the same date in 2023. On a bi-weekly comparison, the decline was 17.2%, or 725.09 million liters. This movement was largely expected, as the conclusion of the sugarcane crushing season in the South-Central region contributes to the reduction in stored volumes. However, there was a deceleration in the rate of decline compared to what was observed in the first half of February. In São Paulo, the largest producing and consuming state for the biofuel, sugar-energy companies stored 1.8 billion liters on March 1st, a 25% decrease from a year prior. These figures highlight ongoing concerns regarding ethanol supply in the market, particularly as the crushing season concludes. Fluctuations in inventory levels significantly impact market prices and supply stability. Market participants will closely monitor stock changes in the coming weeks as more sugar-energy companies resume operations.