Brazilian ethanol parity now seen below 13 cents

In Brazil, the ethanol parity level at which point mills make more money producing ethanol than sugar has fallen to below 13 cents as a result of the devaluation of the Real due to ongoing political scandals but also because of the vast investments the sugar industry has made in recent years in crystallization. Prices are still hovering near to 14 cents, so mills continue to produce sugar as demonstrated by UNICA’s most recent crush update that showed higher-than-expected production.