Domestic ethanol prices in center-south Brazil retreated on Friday following the early start of the 2014-15 harvest.
The ex-mill Ribeirao hydrous ethanol assessment decreased to R$1,600/cu m -- the lowest in almost a month as traders confirmed offers for new crop product available in the market.
Anhydrous ethanol (same basis) was assessed at R$1,625/cu m, down 2% from the beginning of the week.
More than five mills have started to crush in a bid to benefit from current ethanol price levels, said sources. Anhydrous ethanol is now 17% higher than the same period last year while hydrous is 8% stronger.
With ethanol currently paying more than sugar, ethanol production should be maximized.
The majority of these mills are based in Sao Paulo state while one mill in Parana is said to have been online since the end of March 2013 as it never stopped in the intercrop. However, rainy weather has prevented other mills from starting production in the state.
Most of the mills starting crushing this early will be in search of cash but they are still producing at a slow pace.
UNICA estimates that as many as 40 mills would be crushing by the end of March.