Brazil center-south sugar output down 38.3 percent in second half of December

Center-south cane crush was down 5.7 percent, and ethanol manufacturing was up 7.7 percent. For the season to date, April through December, sugar output is down 26.5 percent at 26.3 MMT due to both a drop in cane crush of 3.6 percent YTD and [...]

Has weekly ethanol production hit a winter low point?

Since October, weekly ethanol production has followed last year’s pattern, although on average at about 1 to 2 percent lower daily production rates. The similar year-over-year volume makes sense given that U.S. gasoline consumption in 2018 was nearly unchanged from the year before, and [...]

Signs of faltering ethanol demand?

After more than a year of record ethanol output, production may finally be starting to slow. In its December WASDE report, USDA reduced total corn demand for ethanol manufacturing by 50 million bushels to 5.6 billion bushels for 2018/19.  Ethanol margins have been squeezed by low crude oil prices paired with an increase in corn futures prices. Ethanol futures, conversely, reached the lowest [...]

Update on Brazil’s center-south cane campaign

As anyone following world sugar this season is now amply aware, Brazil’s cane mills are heavily favoring the manufacture of ethanol over sugar this season. In the first half of November, the ethanol share of cane crush was 66 percent, up from nearly 58 [...]

Rise in daily ethanol production despite low profit margins

Daily ethanol production averaged 1.06 million barrels during the first half of November, up from 1.02 million barrels per day during the first half of October and nearly the same as a year ago. Ethanol manufacturers seem to be maintaining production volumes despite eroding [...]

Indian sugar 2018/19 crop update

With Brazil keeping its focus firmly on cane ethanol manufacturing, the market has been keeping an eye on India, which despite weather concerns is still the heir apparent as the top sugar producer in 2018/19. News of pest damage and prior dry conditions cutting [...]

Steep drop in oil influences corn futures

Corn futures are correlated to oil prices, as corn is used to produce ethanol. Oil prices hit an 11-month low due to weak demand and ample supply. WTI Crude Oil settled at $55.69 on Tuesday, its lowest closing price since Nov. 16, 2017. The oil [...]