Brazil Mills Focus on Weather Over Prices
Brazilian sugarcane processors are prioritizing weather conditions over market prices to determine their sugar and ethanol production mix for the rest of the harvest. Wetter conditions are expected to keep more cane directed toward ethanol.
Sugarcane processors in Brazil will prioritize weather conditions over market prices to determine their production mix through the end of the harvest in December. The center-south region has experienced unusually wet winter conditions driven by El Nino. This climate pattern challenges expectations of increased sweetener output despite a 21% price rally in Sugar last month.
High moisture levels in the harvested cane boost vegetation growth while reducing sugar concentration. Analysts indicate this makes the crop better suited for ethanol production rather than sweetener processing.
