BRAZIL: Ethanol stocks in the centre-south are 26.4% higher than a year ago
Published: 04/13/2017, 5:18:44 PM
The 2016/17 season in Brazil's centre-south ended with ethanol stock levels 26.4% above the 1.3 billion litres registered at the end of 2015/16, according to Brazil's Novacana news website.
Mills in the centre-south had 1.7 billion litres of ethanol stocked by April 1, according to data by the Ministry of Agriculture, Livestock and Supply.
According to Brazil's sugarcane industry association UNICA, total volume of ethanol stored by mills in the centre-south at the end of March is sufficient to meet domestic consumption and the obligations established by Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP).
Brazil has increased ethanol imports during the past six months to help meet demand while most of the local mills directed larger volumes of cane to produce sugar, and take advantage of high global prices for the commodity.
Brazil's centre-south imported 476.8 million litres of ethanol in 2016/17. In addition to that, mills have converted 49 million litres of hydrous ethanol to anhydrous from January to March 2017.
"The volume of anhydrous ethanol stored in the mills and the quantity of reprocessed product indicate that there was no excess import during the offseason," UNICA said in a statement.
"Indeed, the fall in prices to the producer since the beginning of January 2017 is mainly associated with the reinstatement of PIS/Cofins taxes charged on ethanol, and the delay in transferring prices to the consumer."