Sao Paulo: In the current season, Brazil has produced record ethanol around 35 billion litres but the available stock won’t be enough to meet demand.
According to Reuters, Matheus Costa, a sugar and ethanol analyst with broker INTL FCStone said, “We don’t see a comfortable stock situation this year. Consumption levels are very high. We believe the market will be very tight around February or March.”
The demand, as well as production of ethanol, are at a record high this year. The monthly ethanol sales in Center-South area crossed 2 billion litres in October for the first time.
The falling prices of sugar in the international market has helped Brazil to emphasise more on ethanol production. The excess production of sugar kept the prices low, and the mills turned back to their favourite ethanol production.
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