Cosan sees Brazilian ethanol market remaining tight as mills keep focus on sugar

In Brazil, Cosan says the domestic ethanol situation remains tight, providing for better margins than otherwise would be as cane millers continue to focus on sugar production while the global market remains in the last phases of deficit. The company plans to invest up to $777 million in cane this season, perhaps 15% more than previously expected, to eek out as much sugar as possible to the detriment of ethanol production. Last season, 57% of cane went to sugar compared to 55% the season before, so the investments are aimed at increasing that ration even further.