Brazilian ethanol glut may see mills switch to more sugar production

In Brazil, Bloomberg reports that despite record ethanol prices in the North-Northeast region, a glut of ethanol in the Center-South region has mills looking at producing sugar again in an effort to boost their returns. Stocks are 72% higher than last year, in part due to the trucker’s strike that kept supplies stranded while also cutting demand for fuel since no one was going anywhere. As a result, ethanol prices are more in line with sugar after they fell 13% in May.