Fitch Ratings announced on Friday 23 that the 2023 sector outlook for Latin America sugar and ethanol is neutral. Global sugar prices are expected to remain high, averaging USD 17.50 cents per pound over the next year, down slightly from the estimated average of USD 18.50 cents per pound in 2022. The agency’s director Flavio Fujihira said that “Brazilian producers should continue to benefit from high sugar prices in Brazilian currency in 2023, as attractive positions have already been fixed, and for the positive trends in the price of ethanol in the domestic market due to its strong correlation with oil prices”.
Sources: Broadcast/Uniao Nacional da Bioenergia (*Translated by Ia Niani)