Raw Sugar Futures Rise as Brazil Mills Divert Cane to Ethanol at 62% of Gasoline
Updated
Updated · Bloomberg · Jun 4
Raw Sugar Futures Rise as Brazil Mills Divert Cane to Ethanol at 62% of Gasoline
3 articles · Updated · Bloomberg · Jun 4
Summary
New York raw sugar futures rose for the first time in three days as traders bet Brazilian mills will steer more cane into ethanol, trimming sugar output in the current crushing season.
Brazilian ethanol now sells at about 62% of gasoline at the pump, down from roughly 70% to 75%, a wider discount that is expected to lift fuel demand.
That shift improves ethanol production economics for mills, reinforcing expectations that Brazil could favor biofuel over sugar and tightening the supply outlook.