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Sugar and ethanol

Overview

Brazil's ethanol industry cannot be understood in isolation from the sugar industry. For the past 30 years, it has profited from managing the delicate mix between sugar and ethanol production. Because of industrial process limitations, Brazilian mills are required to produce both ethanol and sugar. Despite some flexibility, this means that a rise in ethanol production will automatically result in higher sugar output.

This year's sugarcane harvests look strong in other major...

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