Brazilian ethanol prices fall below value of sugar for first time in two years

In Brazil, ethanol prices have risen above the value of sugar for the first time in nearly two years, rising to the equivalent of 19.53 cents per pound. The price shift means that mills will now favor producing biofuel amidst expectations that government will abolish the taxes imposed on ethanol sales. Cane output in Brazil’s central and southern region, the main sugar cane producing area, is expected to total between 550m to 580m tonnes, a 7-9 per cent increase from the previous season. This has depressed the sugar price, which fell to a two and a half year low of 18.03 cents last week.

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