After the drop in sugar prices in the first two months of the year, the product returned to increase in March. According to the monthly bulletin on sugarcane released by Brazil’s Supply Company (Conab), the high prices follow the foreign market and are influenced by the increase in oil prices. However, this increase in the domestic scenario tends to be limited due to the appreciation of the Brazilian currency against the U.S. dollar, and the following sugarcane crop, which is expected to improve production. Ethanol prices also rose following the prices of the barrel of oil in the global market, and the high competitiveness of biofuel in relation to gasoline. In addition, the successful control of Covid-19 will also push the increase in consumption at the beginning of the 2022/23 season. “Despite the rise in price, the average price of ethanol is still more competitive than that of gasoline in the main producing states”, said the Company’s analyst, Fábio Costa.
Sources: Conab/Notícias Agrícolas (*Translated by Ia Niani)