Sugar production is expected to increase again to reach 31.8 million tons, up 9.5% over the previous harvest. In the evaluation of Conab, this shows a tendency of rebalancing between the destination of sugarcane for the manufacture of sugar and ethanol. According to the Superintendent of Agribusiness Information of Conab, Cleverton Santana, this is a move back to normality because, last year, the price of sugar was reduced in the international market. “As most of our production is for export, this has influenced the decision of our units to reduce production at the time. We now turn to normal production, “said the superintendent. The trend, however, is that the market is still more attractive to ethanol because of the large amount of sugar on the international market, with India maintaining its high production, which harms Brazilian exports and pulls down the price on intern market.
Source: Canal Rural