Probable mix of larger cane for sugar in Brazil drops commodity prices in the world

A likely larger share of the sugarcane harvest for sugar production, to the detriment of ethanol, in the world's largest producer, Brazil, kept the sweetener markets low on international exchanges this Wednesday (4). The analysis was made by Reuters based on commodity market operators. According to these traders, changes in Brazilian fuel policy under the new president, Luiz Inacio Lula da Silva, are likely to favor the use of cane to produce sugar over ethanol. "Well, for all the mills or groups of mills that have been making plans to increase ethanol production, those plans now look questionable," a US sugar broker told the International News Agency. Another factor that pressured the market yesterday is the increase in sugar production in India, which has left the market on the defensive. In New York on Wednesday (4) there was a low on all ICE Futures screens for raw sugar. The March/23 lot was contracted yesterday at 19.54 cents per pound, a devaluation of 16 points compared to ...