Brazil reduced its sugarcane harvest forecast for 2017/18 to 635.59 million tonnes. This is 3.3% less than in the previous growing season. The acreage of the world's largest sugar cane farmer has been reduced.
However, sugar production is estimated to be 0.2% higher. This controls the industry through the production directions. 47.1% are now used for the production of sugar, the rest goes into the production of ethanol. Ethanol production uses 2.7% less sugarcane.
As gasoline prices have risen in Brazil, making ethanol cheaper in relative terms, oil companies are mixing more biofuel with gasoline.
Text: HANSA Derivatives Trading GmbH /
