The persistently strong demand for fuel in the country is seen countering a drop in hydrous ethanol prices at the plant that is customary at the beginning of each season. The bias is still bullish for prices, despite the fact that almost half of the plants in the Central-South have begun to process sugarcane from the new 2014/15 crop. 

Tuesday, the daily indicator Esalq/BM&FBovespa rose 2.98%, to R$1,348 per cubic meter, the sixth consecutive increase. Tarcilo Rodrigues, director of ethanol trading Bioagência, notes that not only is the demand for ethanol high in the country, but so is the demand for fuel in general. 

According to the Brazilian Petroleum Agency (ANP), in January, consumption of gasoline C (which has 25% of anhydrous ethanol) and hydrous ethanol together rose 10.5% compared to January 2013. In February, the increase was even stronger -- 16.5%, by the same comparison.