Global sugar prices headed for more increases as Brazil cuts output; Brazilian ethanol output slashed

In Brazil, speculation is growing that reduction in Brazilian sugarcane output may boost sugar prices, pushing shares in Cosan, the world’s biggest sugarcane processor, to their highest point since last September.  According to UNICA, sugar-cane output in the country’s Center South production region fell to 33.5 million metric tons as of July 16th, down from 35.1 million a year earlier. Rains have been blamed for a slowdown in production.

Overall, sugar prices are up 54 percent this year on fears of an Indian sugar crop failure, and prices may hit as high as 25 cents a pound, a high since the early 1980s. The increase in prices and slowdown in production will force ethanol producers to trim output, which was down 14 percent compared to this period in 2008.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Brazilian sugar output rises as weather improves, but yields fall

In Brazil, the Center South Sugar and Ethanol Industry Association said that sugar output had risen 2.6 percent in August after improved weather permitted more aggressive harvest efforts. The region's...

Brazil anticipates record sugarcane harvest as ethanol production forecast jumps

In Brazil, according to Conab, Brazil is expecting a record sugarcane harvest of 629 million tons for this year, with an expected ethanol production of 2.78 billion gallons, according to reports from ...

ISO says Brazilian sugar output may rise 35 million tons next year, ethanol exports to drop

In Brazil, the International Sugar Organization is offering guidance of a potentially large sugar crop in Brazil next year,in response to soaring sugar prices, which have soared 85 percent this year f...

Researchers increase sugarcane ethanol output by 17 percent

In a new article published in ACS' Biotechnology Progress, researchers boosted sugarcane ethanol output by 17 percent by introducing extremely low frequency magnetic waves. The study also showed a mat...

Brazilian ethanol production to increase 23 percent in 2008

In Brazil, ethanol production is expected to grow 19 percent this year to 7.238 billion gallons, with a potential increase in exports of 23 percent to 1.1 billion gallons, according to the Brazilian a...

Brazilian analyst says ethanol production will double, industry will shrink from 200 to 30 competitors by 2015

In Brazil, analyst Julio Maria Borges has projected that Brazilian sugar cane output will double by 2015, but the industry will consolidate from 200 producers to 30, as producers vertically integrate ...