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The rising corn output in Brazil is assisting in countering the high price of sugar. Recently, global sugar prices reached an 11-year high due to the sugar crunch in most parts of the world. Now, corn is used more widely to produce ethanol, decreasing the sugar output's dependency.<br><br>
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The Impending Relief in Global Sugar Shortages, Thanks to a Corn Supply The Impending Relief in Global Sugar Shortages, Thanks to a Corn Supply Boom Boom The rising corn output in Brazil is assisting in countering the high price of sugar. Recently, global sugar prices reached an 11-year high due to the sugar crunch in most parts of the world. Now, corn is used more widely to produce ethanol, decreasing the sugar output's dependency. As a result, mills are now focusing on producing more sugar for consumption rather than producing biofuel. A senior analyst at Green Pool Commodity Specialists said “Anyone with money today is either investing in corn ethanol, or adding capacity to produce sugar.” This predicted decline in sugar prices would be great for battling the surging global food inflation. The reason behind the current price inflation of sugar is India’s low sugar production in this season due to extremely uneven weather in the sugar-producing states of India. Boost in Sugar Production in Brazil Boost in Sugar Production in Brazil Experts are considering corn as a sugar alternative in ethanol production. The share of corn is significantly increasing in ethanol production in Brazil. In this season, Ethanol obtained from corn is about a fifth of the total ethanol production, five years ago it was at zero. Datagro, a Brazilian consultancy predicted that, by the end of 2033 corn will contribute to a third of the total ethanol production in Brazil. Ethanol derived from corn output is more profitable as the by-products of the grain are used for the animal feed, which covers the grain cost. According to reports from BTG Pactual, in the last two years, corn-derived ethanol has been 16% cheaper than ethanol derived from sugarcane.
As a result, sugar-producing mills are focusing on producing more sugar for human consumption. Sugarcane mills in Brazil already planned to maximise their sugar output, adding 2.5 million tons of capacity. The head of sugar for the Americas at Hedgepoint Global Markets Mr. Murilo Mello said, Mills will probably keep maximising sugar production for at least two more seasons. The Bottom Line The Bottom Line The ethanol derived from corn is helping sugar outputs in Brazil. Experts are predicting that by the end of 2033, ethanol derived from corn will be a third of the total ethanol production of Brazil. As a result, sugar-producing mills are focusing on increasing the sugar output in this season. Tradologie.com offers the best platform for your needs if you're a sugar importer/ corn importer looking to buy sugar/ corn in bulk or a sugar exporter/ corn exporter looking to export sugar/corn in bulk. With the help of Tradologie.com, bulk sugar/corn trade is possible for all types. Tradologie.com platform makes it possible for customers to purchase rice, sugar, wheat, and spices, among other high-quality agricultural products, at flexible prices. Tradologie.com is a digital platform that connects buyers and sellers of bulk agro commodities across the globe. With the use of technology, Tradologie.com ensures seamless transactions between agro- exporters and importers. With 70,000+ verified suppliers from more than 150 countries and 600,000+ verified buyers worldwide, Tradologie.com is expanding quickly. If you want to register as a buyer, click here, If you want to register as a seller, click here. To stay updated about the latest developments in the agro-trading sector, follow Tradologie.com on all social media platforms.
