Ethanol prices fell sharply in Brazil in the first official week of cane processing in the 2018/19 center-south crop, pressured by an increase in supplies as most mills are boosting biofuel production this season. Cepea/Esalq, an agricultural research center at the University of Sao Paulo, said prices for hydrous ethanol fell 8.4 percent on average last week to 1.65 real per liter ($1.84 per gallon) in Brazil’s largest fuel market, the Sao Paulo state, when compared to the previous week. Hydrous ethanol is the type used by flex fuel cars as a substitute for gasoline. Mills had planned to boost production of the product to meet rising demand and to reduce sugar output, since prices for the sweetener are hovering around the lowest levels in 2-1/2 years.