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Sugar and ethanol under market pressure

The scenario of global sugar and ethanol is undergoing crucial transformations that affect the entire value chain. It is this time of change that technical discussions are most needed, as those which will be performed at the VIII ISO DATAGRO New York Sugar & Ethanol Conference in May 14, 2014, at the Waldorf Astoria in New York - USA.

The prices in the sugar market continued their downtrend in 2013. The overproduction worldwide last season and the prospect of new sugar surplus in 2013/14 ensured the continuation of this downward trend in international prices.

In Asia, since 2007, sugar production outstrips demand, thus generating consecutive surpluses. There are indications that the scenario will remain the same in 2013/14 season due to monsoon periods in much of the continent, resulting in better production than expected in several countries of the region.

The European Union decided In June 2013 to end the quota system for sugar production, further increasing the prospects of surplus in the near future. Among the major sugar producers in the world, only the European Union, Russia and India’s production fell relevant amounts in the 2012/13 compared with 2011/12 crop year, 8.5%, 6.0% and 4.3 %, respectively. Despite the drop in production, European Union and Russia continued to produce significantly higher volumes than the average of the last 5 years.

In contrast, the market for Brazilian ethanol has benefited from government measures in 2013, which although not providing for the needs of the sector, increased the profitability of ethanol and encouraged the production and consumption of the product. Among them, the 6.6% increase in the price of gasoline in January, increasing the mandatory blend of anhydrous in gasoline from 20% to 25 %, and the exemption of PIS / COFINS for ethanol, starting in May.

In the United States, the factor that changed the stock prices of ethanol producers was the proposal made by the U.S. Environmental Protection Agency (EPA) to reduce the target of mixture of biofuel to gasoline. The EPA proposal is the mixing of 15.2 billion gallons of ethanol next year, volume 16 % below the 2007 law.

Follow these and other discussions at the ISO VIII DATAGRO New York Sugar & Ethanol Conference to be held in May 14, 2014 , in New York , USA . Find out more at www.isodatagroconferences.com


Mais informações para a imprensa:
Luiz Henrique Miranda e Marily Miranda
AMIgo!
Fone: 11 - 3873-5488
Cel: 11 - 996588766
E-mail: lhmiranda@pressclub.com.br
Site: http://www.agenciaamigo.com.br