Ethanol prices for producers receive support in the short term.

According to the new survey by DATAGRO A&EAccording to a report released this Monday (23), the ethanol market for producers showed low activity throughout the last week, with mills reducing their exposure in the spot market as they liquidate stocks from the current harvest and prepare for the start of the 26/27 harvest. The most relevant negotiations remained concentrated in interstate flows, mainly from Mato Grosso do Sul and Goiás to São Paulo and Paraná, the report points out. With fewer active agents, low liquidity and historically low stocks, ethanol prices in the domestic market continue to find support, even with the start of the new harvest in some units. Throughout the week, producers adopted a more cautious stance, awaiting greater clarity on the next movements in fuel prices. The expectation of adjustments by Petrobras — coupled with adjustments already made by private refineries — again supported the upward trend in the ethanol market. According to the document, “even in an environment of low liquidity, prices remain firm, mainly supported by low stock levels”. If the current scenario of gasoline price discrepancies widens or persists and geopolitical tensions continue, then… DATAGRO The text indicates that ethanol tends to maintain a firm bias in the short term. To read the full analysis of… DATAGRO A&Eaccess the analysis section of the DATAGRO Portal.

This text was translated by machine from Brazilian Portuguese.