Investors scoping ethanol opportunities in Brazil

In Brazil, Reuters reports that with ethanol at near all-time highs and sugar at five-year highs, investors are rushing to scoop up opportunities in the “Saudi Arabia of sugarcane”. As many as 40 mills are for sale and 30% of the country’s sugarcane crushing capacity, primarily smaller mills, is idle due to years of financial difficulties and low prices. With higher prices the past two years, the EBIDTA of many companies has improved, making them attractive targets for acquisition by investors.