Sao Paulo state cuts ICMS tax on gasoline

In Brazil, Reuters reports Sao Paulo state has cut the so-called ICMS tax on gasoline which will make the fossil-based fuel more competitive against ethanol, which in turn will cut demand for ethanol and likely push sugar millers to switch towards more sugar production instead. Taxes were unchanged on hydrous ethanol at the pump, however. As a result, raw sugar futures closed slightly lower on Tuesday to a four-month low. The Brazilian sugarcane crush got off to a slow start this year due to weather.