Brazil sugar cane harvest up sharply, sugar production down as ethanol effect is felt

Bloomberg reports that Brazil’s sugar output is expected to decline this year despite record sugar cane harvests, as Brazil diverts more sugar to fuel production. Total harvest is projected at 547.2 million tons of sugar cane, up from 474 million tons last year, but sugar production will decline from 30 million metric tons from 30.2 million last year. Ethanol production is expected to increase to 5.6 billion gallons, up from 4.5 billion last year.

Bloomberg reported that sugar futures at the New York Board of Trade are down 19 percent this year on projections of bumper crops in Brazil and India.  The October contract rose 1 percent, to 9.51 cents a pound on the news.

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