Ethanol sales from mills in Brazil's mid-south region have dipped 2% year-on-year in the current harvest amid flagging demand for exports, according to local sugarcane industry association Unica.

Sales of the biofuel have fallen to 6.9Bl since the harvest began in April from 7.04Bl in the year-ago period, Unica said in its latest bulletin on Thursday.

"This result is due to a 44% fall in exports, while domestic sales rose 4.32% to 6.4Bl," the São Paulo-based body said.

Anhydrous ethanol - mixed into Brazil's gasoline blend - accounted for 430Ml of sales in the first half of July, up 10% year-on-year.

The figure for hydrous ethanol - used in flex-fuel and biofuel-only vehicles - fell from 553Ml to 522Ml.

Waning demand for Brazil's ethanol exports comes as US mills report record output, buoyed by weak corn prices and rising crude values.

10% year-on-year.