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A glut of raw sugar has forced Brazil's sugar mills to switch to ethanol and sugar production.

Date:3, 19, 2018Hits:5

      As Brazil's sugarcane squeeze season begins, the country's sugar mills are doing everything they can to prevent raw sugar from entering the global market, in order to avoid a global glut that has pushed the price down to a two-year low.

      ICE sugar futures fell below 13 cents a pound, while production costs in central and southern Brazil were between 13.5 and 15 cents.

      "We need to reduce the supply of sugar to reduce global oversupply," says Hugo Cagno, a partner at Tereos, a French sugar group.

      This week, analysts at Datagro said they expected to produce 31.6 million tonnes of sugar in the south-central region in 2018-19, down from 36 million tonnes last year.

      Sugar mill owners, said sugar mill's action is obviously, those who can produce yeast sugar mill is as far as possible to b, b the yeast for domestic prices and demand are strong, the equivalent of sugar prices at about 17 cents per pound.

      Other well-capitated sugar mills are looking to stock up, waiting for sugar prices to rise and sell again -- a period likely to be early next year.

      Another strategy is to increase sugar production and sell it to domestic food and beverage companies.

      Turn from: guangxi sugar net.