Sweetener or Ethanol? Sugar mkt is watching what Brazil mills are planning

Last season, Center-South millers made an unprecedented 26% cut for sugar production from the prior year as they opted for more ethanol

Brazil’s sugar mills can make the switch into ethanol easier than ever before, making it harder to predict how much sweetener will come from the world’s biggest producer and exporter.

Take the case of Sao Paulo-based Usina Batatais. Just two years ago, no matter how low sugar prices got, the company had no choice but send at least 45 per cent of crops into producing the sweetener. Now, after investing in expansion, that number has dropped to about 36 per cent for the 2019-2020 season, Luiz Gustavo Junqueira, the group’s commercial director, said in an interview.

The question of the