BRAZIL’S BUMPER HARVEST SQUEEZES SUGAR PRICES AND CHALLENGES ETHANOL COMPETITIVENESS

According to Itaú BBA’s October Monthly Agro Report, Brazil is the primary source of global sugar market stability, maintaining prices with a record crop in the Center-South, despite a 4% decline in crushing and lower ATR. While sugar maintains a tiny advantage over ethanol, the drop in gasoline prices puts pressure on ethanol competitiveness, prompting producers to plan sales. Abroad, the harvest in the Northern Hemisphere began positively, with good estimates for India, Thailand, and the European Union, albeit the latter is expected to produce less due to reduced acreage. The global excess of 1.7 million tons maintains price stability, and the premium for white sugar over raw sugar remains favorable.
Source: Cana Online (*Translated by Ia Niani)