Brazil hydrous ethanol prices rose last week in the Sao Paulo market as demand improved but offers were limited, the Centre for Advanced Applied Economics (CEPEA) said on Tuesday.

Processing plants continue to be focused on the production of sugarcane, hence reducing the supply of ethanol. At the same time, buyers showed greater interest on purchasing hydrous ethanol, especially at the end of the week, aiming to supply their stocks, CEPEA says.

CEPEA assessed hydrous ethanol prices for the week of 11-15 July at Brazilian reais (R) 1.621/litre ($1.87/gal), a 1.6% increase from the previous assessment.

Anhydrous ethanol demand was relatively steady in the northeast region, but not enough to avoid a price decrease of 0.3% compared with the previous week. This fuel closed at an average of R1.616/litre ($1.87), according to CEPEA researchers.

Most sales of anhydrous ethanol continue to be under contract, not spot. Taxes are not included in the figures, CEPEA said.

The sugarcane harvest in the centre-south, which accounts for 90% of Brazil's ethanol production, runs from April to November/December.

Brazil also produces ethanol in the northeast region. The sugarcane harvest