Sugarcane, the balance between sugar and ethanol
Brazilian sugar mills redistribute sugarcane crushing volumes in real-time between sugar and ethanol depending on oil price levels.
Proportion of sugar refining
Proportion of ethanol fermentation
Oil price decline period
Shift toward sugar
Ethanol profitability is low, so mills put more sugarcane into sugar production, increasing global sugar supply
Oil price surge period
Shift toward ethanol
Combined with the review of increasing the fuel blending ratio (30%→35%), sugarcane moves to fuel fermentation, reducing sugar supply