Rabobank believes Brazil’s “ethanol parity” no longer relevant to global sugar market

In Brazil, Agrimoney reports that Rabobank believes the “ethanol parity”—or the equivalent price of ethanol in sugar terms which has traditionally dictated when mills will focus on ethanol or sugar production, depending on the better return—is no longer relevant to the global sugar market. Up until now, eyes from around the world looked to Brazilian ethanol prices to determine what the global sugar price would be and make planting or refining decisions accordingly, but the bank now says India’s sugar surplus is the main market driver.