Brazilian sugar mills may reduce ethanol production this year as sugar prices set to rise

In Brazil, Platts reports that with ethanol set to account for 65% of cane crushed during the 2018/19 season that is just wrapping up, the highest seen in a decade, oil and gas prices are expected to impact ethanol—and therefore sugar—more than ever before. With global sugar production falling this year and edging toward a more balanced market with a slight deficit, sugar prices may strengthen and in turn increase demand for cane to produce sugar rather than ethanol.