In Brazil, a Platts survey of analysts estimates H2 November ethanol production will have fallen 33% on the year to 507 million liters. The premium for sugar against ethanol was around 300 points in November due to a weak Brazilian real and steady raw sugar futures prices but with the real strengthening, that premium is likely to have narrowed to 200 points. The lower premium is still enough to encourage mills to favor sugar over ethanol production, however, even as the crushing season winds down for the year.
