Platts sees Brazilian ethanol production rising 10% during H2 July from H1

In Brazil, Platts expects ethanol production to fall slightly during the second half of July from the same time last year but to be 10% higher than during the first half of the month at 2.06 billion liters. With 50.69 million metric tons of cane likely crushed during the period, it expects mills to have diverted 49.62% towards ethanol production. The spread between hydrous ethanol and sugar production has narrowed slightly following the government’s decision to lower the PIS/Cofins taxes shortly after raising them, so some mills might divert more cane to ethanol production in response.