Sugar millers in Brazil’s center south, the main growing region of the world’s biggest producer, will use more cane to make ethanol as prices for the sweetener tumble, according to Usina Alta Mogiana S/A.
Producers in the area will direct 55.2 percent of all the 580 million metric tons of cane processed to making the biofuel in the 2013-14 season started there in April, the Sao Joaquim da Barra mill in the state of Sao Paulo said in a report e-mailed today. That compares with a previous forecast for 53.5 percent. Last year, millers used 50.5 percent of the cane to produce ethanol, data from industry group Unica showed.
Sugar futures, down 13 percent in 2013, are heading for a third year of declines, the longest slump since 1992. The global sweetener surplus will be a record 10 million tons in the 2012-13 season that ends in September in most countries, the International Sugar Organization in London estimates.