CONCERNS OVER SURGE IN BRAZILIAN SUPPLY (น้องโบว์)<br><br>Several traders expressed concern that Brazil's cane harvest starting in May could lead to an increase in global sugar supply, thus weighing down on global sugar futures even further. <br><br>Brazil is one of the world's largest sugar producers, with sugar mills in the country having the flexibility to convert sugar cane into either sugar or ethanol. <br><br>The lower crude oil prices have reduced the appeal of ethanol against the sweetener, which would thus incentivize Brazilian mills to produce more sugar and less ethanol. <br><br>Adding to the bearishness, Brazil's two largest distributors declared force majeure end-March amid the coronavirus outbreak, as they were unable to sell scheduled cargoes and needed to lower their monthly ethanol purchases due to a reduction in the fuel's demand, Platts reported earlier. <br><br>"Brazilian producers have maximized sugar production this season and they have hedged the majority of the sugar already," another Singapore-based trader told Platts. <br><br>Brazil's sugar-ethanol mix is currently at around 44%-46%, up 11 percentage points from last season, and could potentially surpass 47% once the harvest situation gains clarity in August-September, according to Platts Analytics.
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