Ethanol prices for producers remain under pressure as Brazil’s 2026/27 harvest progresses.

According to the new VIP Report from the DATAGRO A&E, The ethanol market for producers in Brazil remains pressured by the progress of the 2026/27 harvest in the Center-South region and the strong shift in the mix of mills towards ethanol production at the start of the season. "The increase in available supply is negatively impacting prices, in an environment still marked by low liquidity and caution in negotiations," explains the consultancy in the document. Some mills have ended up yielding and negotiating volumes at lower prices, while others remain more distant from the spot market, assessing that current price levels already reflect excessive devaluation for this point in the harvest. Given this scenario, in the São Paulo market, the price of hydrated ethanol for producers reached R$ 2.2741/liter in the week ending May 8th, a decrease of 1.3% in the week and 16.1% year-on-year. Meanwhile, anhydrous ethanol was traded at R$ 2.5928/liter, a decrease of 3.8% in the week and 17.4% compared to the same period last year, both PVU/PVD and without taxes. In Paulínia (SP), the CIF price of hydrated ethanol reached R$ 2.3662/liter, without taxes, a decrease of 1.9% in the week and 15.9% in the annual comparison, according to the DATAGRO Price Reporting Agency (PRA)For more information, visit the website. VIP Report in analysis session from the DATAGRO Portal.

This text was translated by machine from Brazilian Portuguese.