While 2023 seems positive for the Brazilian sugar industry, ethanol’s future is less certain. Based on the first half of June, the price of raw sugar in New York was, on average, 10 cents per pound more expensive than the price of hydrous ethanol stated in sugar equivalent terms. According to Rabobank’s comparison, “Ethanol is under pressure from the drop in international fuel prices, exchange rate appreciation, and uncertainties regarding the pricing of gasoline in the domestic market, whereas the price of sugar continues to be a risk premium due to concerns about El Nino.” Positively surprising, even after sporadic rains that interrupted the harvest, was the yield of the sugarcane fields that have already been harvested.
Sources: Investing.com/Nova Cana (*Translated by Ia Niani)