Strong ethanol share of cane in Brazil’s center-south campaign
In the first half of March, the center-south ethanol share was 83.5 percent of cane use; the cumulative ethanol share for the season that started last April now stands at 53.3 percent. The continued strength of the ethanol share ahead of the start of the new campaign in April could be construed as bearish news, but the prevailing opinion may be that the market is well supplied for 2017/18. Cumulative crush was down 1.8 percent, sugar output was up 1.5 percent at 35.89 MMT, and ethanol output was up 1.3 percent at 25.66 billion liters. Cumulative ethanol sales were reported at 25.24 billion liters, up 1.3 percent, with sales up 5.9 percent for hydrous but down 4.9 percent for anhydrous. About 94 percent of all sales were for the domestic market for the April-March season to date. The sugar share could rise slightly if ethanol pricing responds to pressure in the new season.
Brazilian ethanol & sugar pricing history
Source: UNICA, SEF, McKeany-Flavell
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