Ethanol price is expected to rise in the 2022/23 season, which starts in April in Brazil’s center-south region. The biofuel is likely to offer a greater return than sugar, according to the Continuing Education Program in Business Economics and Management (Pecege), from the Luiz de Queiroz College of Agriculture (Esalq-USP). The liter of anhydrous ethanol is expected to reach R$ 3.99 in São Paulo compared to R$ 3.67 in the current season, whereas hydrous ethanol is expected to reach R$3.43 compared to R$3.24 in this season. Price should encourage greater production of anhydrous. Sugar prices on the domestic market are expected to remain high, especially in the second half of this year, even with a possible drop on the New York Stock Exchange (ICE Futures US). VHP sugar indicator for the foreign market is likely to have an average price of R$ 101.86 per 50-kilo bag in 2022/23, almost stable in relation to the current season. Crystal sugar for the domestic market may rise from R$121.69 per bag in 2021/22 to R$139.29 in 2022/23. The raw material is also expected to rise by nearly 5% in the next season, even after the increase of 57% this season.
Sources: Agência Estado/Jornal Cana (*Translated by Ia Niani)