Frequent rainfall across Brazil's Center-South has delayed sugarcane crushing, pushing up hydrous ethanol prices. Between August and October, the Cepea/Esalq benchmark paid to mills in São Paulo rose about 38%, while pump prices in the state increased 8.6%.
Mato Grosso prices also rose after falling sharply from April through July.
Tighter cane supply raises ethanol costs and can shift sugar-mill output toward sugar or ethanol, affecting the by-product and energy-linked markets that feed buyers watch. Higher ethanol prices can also support demand for corn-based ethanol, though the direct effect on feed ingredient prices is modest.
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