The global sugar balance is “more or less balanced” and the prices of the sweetener will depend greatly on ethanol consumption in Brazil in the 2026/27 harvest, as greater production of the biofuel could reduce the supply of raw materials for food, the executive president of Copersucar, Tomás Manzano, told Reuters on Wednesday (13).
“Sugar is operating in a price range of 14 to 15 cents (dollars per pound on the New York Stock Exchange), in an equilibrium scenario. (The price) will depend a lot on the size of the Brazilian harvest, it is an uncertain number. But our current estimates indicate that the balance is more or less balanced, it will depend on the reaction of the ethanol consumer and the production ‘mix’ of the plants, and the size of the harvest”, he stated.
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The comment was made before the start of an event at the Santos sugar terminal of the company, a global leader in the commercialization of sugar and ethanol, which presented Copersucar’s plans for the use of biomethane fuel to transport sugar to the port, replacing diesel in trucks.
The executive stated that the trend is for the 2026/27 center-south sugar cane harvest to grow compared to the previous cycle, adding that the market converges on the view that the harvest could reach around 630 million tons. He did not comment on the company’s forecast.
“It’s still very early, the harvest has just started, a month ago, there’s still a lot of time to go, it’s going well, and the plants have prioritized a little more ethanol production at the beginning, which is paying better than sugar”, he said.
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According to him, the scenario points to greater competitiveness of ethanol compared to gasoline in Brazil, amid the increase in biofuel production in the country and oil prices at high levels due to the war in Iran.
“With this price drop, the competitiveness of ethanol in relation to gasoline improves, and attracts consumers to fill up with ethanol, it is a healthy and good movement at a time when ethanol is becoming more competitive and demand is increasing”, he added.
