Monday, July 20, 2015
The outlook for the ethanol sector.
After five difficult years for the Brazilian ethanol industry, the sector has been boosted by an increase in the required percentage of ethanol blend in fuel to 27.5%. However, lower global oil and sugar prices have put additional pressure on the industry in terms of the consumer market, and the price of ethanol looks set to remain volatile. Moreover, low world sugar prices have incentivised producers to dedicate a higher percentage of the harvest to ethanol rather than sugar production.