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Brazil's sugar and ethanol producers are expected to prioritize ethanol in the 2026-2027 harvest as biofuel prices rise to multi-year highs and sugar futures reach five-year lows. Ethanol stocks in the center-south region fell 20.7% year-on-year to 5.81 billion liters by January 15, leading to the highest ethanol prices in nearly three years.

Analysts forecast that 53% of sugarcane will be directed to ethanol production, marking a shift from the previous season. Additionally, corn-based ethanol production is anticipated to reach 12 billion liters in the new season, driven by increased demand amid low inventories.