Sugar prices hit “ethanol parity” floor

May 9, 2017 |

In New York, sugar futures have reached what is considered the thin line where Brazilian sugar mills switch to ethanol production when sugar production is no longer as lucrative, known as “ethanol parity.” Prices recently fell to a one-year low, touching the parity line, but prices are expected to begin rebounding enough to keep the sugar-ethanol mix steady without triggering a major shift towards ethanol. The focus on sugar production has created a deficit in ethanol production, attracting imports from the US which has in turn led to discussions about reinstating an import tariff on ethanol.

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Category: Producer News

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