12 November 2012 19:19 [Source: ICIS news]
Gasoline prices can impact sugarcane profitability because they put a cap on the price of hydrous ethanol, which is used in Brazil as a stand-alone fuel, competing directly with gasoline.
Around one-half of
Ethanol makers in
The strategy limits how much ethanol prices can rise, discouraging investments to increase sugarcane production, a market source said on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.
The centre-south harvest runs from April to November/December. The area accounts for 90% of
Centre-south sugarcane production is expected to reach 518.5m tonnes for the 2012-2013 crop year, up from the 493.2m tonnes produced in 2011-2012, according to Unica.
Despite the increase, sugarcane production in the centre-south is still down by 6.9% from 556.9m tonnes produced in the 2010-2011 crop year.
The APLA conference ends on Tuesday.
($1 = €0.79)
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