COFCO sees Brazilian sugar mills reneging on sugar contracts to produce more ethanol

In Brazil, COFCO told Reuters that demand for ethanol could be strong enough to even encourage the sector to cancel contracts for sugar so that the sucrose could be transformed into ethanol instead. COFCO, as an example, already sold all of its anticipated sugar production for the season that began April 1 and plans to boost its ethanol production to take advantage of higher profits for the fuel. The global sugar market is suffering from a glut where prices are around 2.5-year lows.