BRAZIL: Ethanol production expected to increase in 2018, due to sugar surplus

Published: 01/03/2018, 5:30:38 PM

Brazil is expected to use more sugarcane to produce ethanol in 2018, in comparison with 2017, due to low international sugar prices and sugar surplus, according to researchers from the Centre for Advanced Studies on Applied Economics (Cepea), reports Sugaronline.

The estimated increase in ethanol production in 2018 is also due to an increase in ethanol consumption, as the Brazilian economy recovers, and greater ethanol prices in comparison to sugar. 

Prices for contracts of hydrous ethanol maturing during the offseason are expected to remain firm until the start of the next season in April.

Sugar production by sugarcane mills in the centre-south during 2018 should remain in line with total output in 2017.

Sugarcane crush in Brazil centre-south is expected to total 586 million tonnes in 2018/19, slightly higher than in the 2017/18 crop, according to Cepea. Low renewal rate of sugarcane crops during the past couple of years is expected to result in decrease in productivity.