Sugar to Gain 14% on Brazil Ethanol Demand, Guarani CEO Says

Aug. 27 (Bloomberg) — Sugar futures will rise 14 percent in coming months as higher fuel prices prompt mills in Brazil to turn more cane into ethanol rather than sweetener, according to Acucar Guarani SA.

Sugar will rise to about 16 cents a pound, said Jacyr Costa Filho, chief executive officer of Guarani, Brazil’s third- biggest sugar and ethanol producer by market value. The price has climbed 30 percent this year to 14.08 cents yesterday on ICE Futures U.S., formerly the New York Board of Trade.

“Sugar will likely rise to 16 cents to match the returns in ethanol,” Costa said in a Bloomberg Television interview in Sao Paulo. “We believe that in the near future they’ll be balanced relative to ethanol.”

Bloomberg