Brazilian sugar mills favoring hydrous ethanol production over anhydrous

In Brazil, Platts reports mills are favoring hydrous ethanol production over anhydrous with 7.18 billion liters of hydrous produced this season through July 1. Conversely, only 2.82 billion liters of anhydrous was produced during the same period, 13% less than last year. Sugar mills have switched to more sugar production rather than ethanol because of more favorable crushing margins for sugar. As a result of COVID-19 that cut fuel demand as drivers stayed home, UNICA data showed anhydrous sales were down 19% on the year through July 1 while hydrous ethanol sales were down 24% on the year.