Brazilian mills cancel as much as 400,000 tons of sugar exports in favor of ethanol

In Brazil, Reuters reports as much as 400,000 metric tons worth of sugar export contracts have thought to have been cancelled in recent weeks in response to higher ethanol prices in light of rising petroleum prices. A trader told Reuters that nearly every company trading sugar with Brazil has suffered from these cancellations leading to concerns about a future sugar shortage. The delayed sugarcane crop is one of the reasons behind the lack of sugar availability while mills shifting to ethanol to take advantage of rising energy prices has underpinned the market recently.