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Cepea, January 15th, 2024 – Consulting companies estimate that the Central-Southern area in Brazil may crush more than 600 million tons of sugarcane in the 2024/25 season (which officially starts in April/24), despite weather uncertainties in the first months of 2024.
In the 2024/25 season, mills may allocate a bigger amount of cane to produce sugar. This is based on relative prices of sugar and ethanol, which may follow the trend observed over the last two years and prioritize the sugar production.
In 2023, sugar prices in São Paulo state remunerated 100% more than ethanol, according to data from Cepea.
The difficulties that the sugar and ethanol sector in Brazil has been facing, especially the low remuneration of the fuel, have not been preventing agents to develop and/or implement projects to assure them to continue producing biofuels. Renovabio, a program that has been constantly improving, is an example of this initiative.
Players expect signs from the government to assure an increase in the demand and the possibility to continue producing ethanol or even to expand the production – the blend of 30% of the biofuel in gasoline, instead of the current 27%, is a possibility. This is an important aspect in this moment when the supply of corn ethanol is significant in the market.
(Cepea-Brazil)
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Fonte: Cepea