Lower Brazilian sugarcane production sends sugar and ethanol prices soaring

In Brazil, Platts reports UNICA data showed sugarcane production has fallen by more than 7% this season through July to 304 million metric tons, the lowest since 2017/18, which pushed sugar futures higher as well as the spot price for hydrous ethanol. Ethanol production reached 14.1 billion liters through July, down nearly 3.5% on the year, but with sugarcane production expected by Platts to fall more than 12% this season and the focus on sugar production due to high prices, ethanol prices could soar as supplies tighten. Anhydrous ethanol currently has a 15% premium over hydrous.