Brazil Mills Cancel Sugar Export Contracts, Shift to Ethanol

BioRefineries/Renewable Fuel Production, Brazil, Business News/Analysis, Marketing/Market Forces and Sales

May 17, 2022

Print This Article Share it With Friends

by Marcelo Teixeira (St. Kits and Nevis Observer/Reuters) Brazilian sugar cane mills are cancelling some sugar export contracts and diverting production to ethanol to cash in on high energy prices, according to people with direct knowledge of the deals, raising concerns of a sugar shortage.

Nearly every company involved in sugar trading in Brazil has seen cancellations, a trader at a large international commodities merchant told Reuters on the sidelines of Sugar Week in New York last week. He estimated total cancellations so far at 200,000 to 400,000 tonnes of raw sugar.

“It is happening because of the production mix change and also because of the crop delay,” the trader said.

Brazil exports around 2.2 million tonnes of sugar per month during the peak of the crop. A large fall in sugar output could lead to a global sugar shortage, some traders say. read more

Most mills in Brazil are flexible and can partially shift from sugar or ethanol production. Right now, production is shifting in favor of ethanol as high energy prices driven by pandemic recovery and war in Ukraine spur more fuel output. read more READ MORE

Comments are closed.

Advanced BioFuels USA