The progress of the 2026/27 harvest is driving down ethanol prices for producers in the Center-South region.

The progress of the 2026/27 sugarcane harvest has put pressure on ethanol prices for producers in the Center-South region of Brazil, according to the latest data. VIP Report from the DATAGRO A&EOn April 28th, in São Paulo, hydrated ethanol was traded at R$ 2.3297/liter, a 7.0% drop in the week and a 14.8% drop in a year. Anhydrous ethanol fell to R$ 2.6386/liter, with a 10.7% weekly decrease and a 15.4% year-on-year decrease (values without taxes, PVU/PVD). In Paulínia (SP), the CIF price of hydrated ethanol reached R$ 2.4144/liter, a 5.7% decrease in the week and a 14.6% decrease in a year, according to [source missing]. the DATAGRO Price Reporting Agency (PRA)According to the report, the movement reflects repricing in light of the progress in sugarcane crushing and the gradual increase in supply. Despite the significant drop in prices, liquidity remains low. Negotiations continue to be concentrated in small volumes, with distributors adopting a cautious stance and prioritizing one-off purchases. The market is still seeking an equilibrium point, with demand testing lower levels as supply grows. Given this scenario, some mills—especially those with lower cash needs—have reduced their market activity, awaiting factors that could support prices, such as a possible gasoline price adjustment. Meanwhile, in regions further from ports, such as Goiás, Minas Gerais, and Mato Grosso do Sul, ethanol remains competitive. Hydrated ethanol was equivalent to US$16.28 c/lb in Quirinópolis (GO), US$15.44 c/lb in the Triângulo Mineiro region (MG), and US$15.37 c/lb in Dourados (MS). Prices remain above the parity price for VHP sugar for export, indicating a relative advantage for biofuel in these regions. For more information, visit [link/website address]. VIP Report in analysis session of DATAGRO Portal.

This text was translated by machine from Brazilian Portuguese.