Brazilian sugar mills likely to see smaller premiums for anhydrous ethanol this season

In Brazil, thanks to anticipated increased demand for hydrous ethanol as mills take advantage of higher returns compared to sugar while also keeping prices at the pump low enough to encourage demand, Platts reports that mills also expect to earn smaller premiums for anhydrous ethanol than in previous years as a result of the focus on hydrous. Mills are negotiating long term contracts this week, most of which remain unsigned just days before the deadline for contract signatures.