Harvest inhibits mills from switching away from ethanol faster
August 28, 2013
| Meghan Sapp
In Brazil, sugarcane mills are at their peak harvesting period, a fact which has reduced their ability to switch between ethanol and sugar as quickly as they would like in order to take advantage of market movements. Though sugar prices are more interesting thanks to a weaker real, and some cane has been diverted back to sugar, the lack of flexibility means that a lot of ethanol is still being produced. About 43 million metric tons of cane was processed during the first half of August, with 52.2% going towards ethanol production. Undenatured ethanol exports reached 407.8 million liters in August, the highest of any month in 2013.
Category: Fuels