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Sao Paulo: Following the low market prices of sugar, mills from Brazil are likely to focus on ethanol production like last year.
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.
This strategy of switchover makes Brazilian mills key swing factor in sugar markets. Last year global sugar production was reduced as the world’s largest producer cut output by almost 10 million tonnes.
Franciele Rivero, an analyst at sugar trader Group Sopex expects that Brazil will cut cane allocation to sugar by 35 per cent.
