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  • Sugar is now paying more than ethanol; 
  • It is a first since 2017; 
  • Mills are changing their production mix; 

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Sugar Takes the Lead  

  • For the first time since August 2017 our model shows mills in CS Brazil would be better off making sugar and not ethanol at today’s prices;  
  • Although they won’t start crushing new season cane until April, and a lot can change by then, producers can hedging sugar futures today; 

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  • We know some mills have, and CS is slowly increasing the cane allocation to sugar – see this analysis for the details; 
  • The more No.11 strengthens, the higher the sugar mix will go; 
  • And we know CS has the ability to add close to 10mmt of additional sugar to the world market…  

Weekly Updates 

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  • For updates on Sugar, Ethanol and Mills production decisions check our report: CS Brazil – Sugar or Ethanol? 
  • In this report we compare domestic prices in Brazil with No.11, as well as an update on the fuel market of the country; 

Ana Zancaner

Ana graduated from Insper University Sao Paulo in 2013, with a bachelor’s degree in business administration. She joined CZ as an intern in 2013 and is now our senior analyst in our Sao Paulo office. At CZ she is responsible mainly for analysis of the Brazilian sugar and ethanol sector but supporting other consulting requests as well.

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