Ethanol/CEPEA: Off-Season Sustains Prices in São Paulo

According to CEPEA, ethanol prices in São Paulo remain firm due to limited off-season supply and rising oil prices from Middle East conflicts. While demand is reasonable, global uncertainties are causing distributors to purchase cautiously, only for immediate needs.

According to the CEPEA research center at the University of São Paulo, ethanol prices in São Paulo state are holding firm during the off-season. Mill agents are maintaining their prices in new negotiations, influenced by two primary factors: the restricted volume of biofuel available during this inter-harvest period and the rise in oil prices due to conflicts in the Middle East. CEPEA researchers indicate that, on the demand side, the search for biofuel is considered reasonable. However, distributors are adopting a more cautious approach given the uncertainties surrounding the global scenario, oil prices, and Petrobras' policies. They are awaiting new definitions and acquiring only sufficient volumes to meet immediate needs. Consequently, between March 9 and 13, the CEPEA/ESALQ Index for hydrous ethanol in São Paulo state closed at R$ 2.9439 per liter (net of ICMS and PIS/Cofins taxes).