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Brazil mills cutting some sugar production, boosting ethanol volumes -Datagro

May 19, 2021
Nasdaq | https://bit.ly/2Sjy0fM

NEW YORK, May 19 (Reuters) - Brazilian sugar and ethanol plants are likely to temporarily reduce sugar production volumes as a way to increase ethanol output to address increasing demand and high prices for the biofuel in the country, consultancy Datagro said on Wednesday.

Analyst Plinio Nastari said during the Santander ISO Datagro New York Sugar and Ethanol Conference that financial returns on sales of anhydrous ethanol, the type that is blended in gasoline, have surpassed those from sugar sales, leading some mills to adjust their production strategy for the moment.

(Reporting by Marcelo Teixeira Editing by Chizu Nomiyama)