Brazilian hydrous ethanol returns improving

In Brazil, Safras & Mercado report that the economic returns for hydrous ethanol compared to sugar production are improving, in part thanks to some appreciation of the Brazilian Real against the dollar as well as tightness in the physical market. Sugar’s advantage over hydrous shifted to 17%, the same as seen in July, compared to the more recent level of 22%. Tighter physical markets are expected to continue as sugar mills continue to focus on sugar production.