Brazil Sugar and Ethanol Producers to Shift Focus to Ethanol in 2026-2027 Season
Brazil's sugar and ethanol producers are set to prioritize ethanol production for the 2026-2027 harvest due to rising biofuel prices and low sugar futures. Ethanol stocks in the center-south region dropped 20.7% year-on-year to 5.81 billion liters as of January 15, contributing to the highest ethanol prices in nearly three years. Analysts predict that 53% of sugarcane will be allocated to ethanol in the upcoming season, reversing previous trends. Corn-based ethanol is also expanding, with production projected to reach 12 billion liters.
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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.
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