
The average pump price of hydrated ethanol in Brazil reached R$4.38 per liter in the first half of November, up 1.39% from early October, according to the Edenred Ticket Log index. Mill prices rose as slower cane crushing due to rain and producers' preference for sugar tightened ethanol supply.
Total ethanol stocks at producers were 15% lower at end-October, while diesel and gasoline pump prices fell.
Tighter mill supply and lower ethanol stocks support Brazilian ethanol prices, while falling Brent and fuel prices weigh on the broader fuel complex. Shrinking cane crush is also a sign of lower sugar-ethanol output flexibility.
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