Some Mills Resume Sugarcane Crushing in Brazil to Make Ethanol

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March 15, 2022

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by Roberto Samora and Marcelo Teixeira (Reuters/NASDAQ) A handful of mills resumed sugarcane crushing in Brazil’s centre-south (CS) region after several weeks off,seeking to produce ethanol and profit from sky-high prices for the biofuel, data from industry group Unica showed on Monday.

Unica said that 159,000 tonnes of sugarcane were processed in the second half of February, 76% less than in the same time a year earlier, but the first crushing activity since late last year. There was no sugar production and all the processed cane was used to make ethanol.

Mills produced 129 million liters of ethanol in the period, 8% more than at this time last year.

Unica said sales of hydrous ethanol, the type that competes at pumps with gasoline, jumped 26% in February from January, but remained 28% behind levels seen in February 2021 as fuel demand fell in Brazil due to high prices.

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Ethanol’s appeal to car owners is growing in the country, as gasoline prices have hit all-time highs. Most cars in Brazil can run on either gasoline or ethanol due to flexible engines, with drivers picking the most economical one at the pump. READ MORE

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