FCStone sees Brazil shifting to more sugar production next year with 9% less ethanol

In Brazil, Reuters reports that FCStone expects ethanol production to fall by nearly 9% on the year in 2019/20 to 27.4 billion liters as sugar mills switch to using more sugarcane for sugar production rather than ethanol. During the current season which is coming to an end, mills focused on ethanol production in response to low global sugar prices, with the company expecting production reaching more than 30 billion liters this year. Sugar prices are beginning to recover after several years of surplus, so mills are expected to divert cane towards an extra 3 million metric tons of sugar next year.