The ethanol exports by Brazil in August is highest since October 2013. Exports reached 314 million litres. The falling prices of sugar in the international market has helped Brazil to emphasise more on ethanol production.
The excess production of sugar kept the prices low, and the mills turned back to their favourite ethanol production as the gasoline prices have increased. The Country’s Trade Ministry has yet not released the data related to main destinations, but Brazil routinely ships small volumes do the United States and to Asian countries such as Japan and South Korea.
Sugar mills will assign low sugarcane for sugar production in the 2019/20 crop due to low prices. It is expected that they will allocate more sugarcane towards ethanol output because of strong local demand for the biofuel. Sugar output in Brazil is also likely to decline from expected production as mills are likely to divert less cane for sugar.
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