Brazilian cane ethanol forecast drops (again)

In Brazil, analysts Datagro have reduced their cane production forecasts for the season yet again, expecting ethanol production to reach 19.89 billion liters of ethanol, down from their September estimate of 20.48 billion liters. Of the total, 12.12 billion liters will be hydrous ethanol, predominantly sold in the domestic market for flex-fuel vehicles.

The new estimates are roughly 20% lower than expected at the beginning of the season. Most mills will finish harvest early in mid-November.