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Brazil's National Energy Policy Council has set a new biomethane procurement target, requiring natural gas producers and importers to reduce emissions by purchasing biomethane. This target presents a significant opportunity for ethanol mills, enabling them to meet market demand by producing biomethane and obtaining carbon reduction certificates, thereby driving energy transition and sustainable development.
StoneX analysis indicates that the 2026/27 sugarcane harvest season in Brazil's Center-South is starting with a more balanced market condition after producers accelerated sugar hedging. This move reduces selling pressure and could lead to higher international sugar prices. Producers took advantage of a price rally in March, boosting hedging from 41.8% to 59.5%, narrowing the gap compared to the previous cycle.
Brazil's Renuka Vale do Ivaí sugar mill has been added to the Ministry of Labor and Employment's 'dirty list' for slave labor due to conditions found in 2025. Over 50 indigenous workers, recruited from Mato Grosso do Sul by a third-party company, were rescued from a lodging in Itambé, Paraná, where they were subjected to conditions analogous to slavery while working for the mill.
Brazilian mining giant Vale has signed a 25-year charter agreement with China's Shandong Shipping Corporation for the construction and operation of the world's first ethanol-powered ocean-going vessels. This initiative marks a significant step in Vale's fleet decarbonization strategy, aiming to enhance energy efficiency and reduce carbon emissions. These second-generation Guaibamax vessels are expected to be delivered from 2029 and will feature advanced energy-saving technologies like rotor sails.
Five major trading companies concentrated nearly 60% of Brazil's sugar exports in 2025, totaling 31.01 million tonnes, according to Williams maritime agency. Asia's Wilmar was the top exporter for the fourth consecutive year, shipping 4.94 million tonnes. Despite a slight year-on-year decrease, this volume represents the second highest in historical records.
As of April 8th, 2025/26 crushing season, 51 sugar mills in Guangxi have completed their operations, but 22 mills, with a combined daily cane crushing capacity of 153,500 tons, are still active. These remaining mills are mainly located in Nanning and Liuzhou, with a few in Chongzuo and Baise. Notably, most of the completed mills extended their operating days, with 18 extending by over 20 days, indicating a prolonged crushing season overall.
To ensure stable and high yields in the sugar industry, Shibie Sugar Mill of Boqing Company has been actively promoting early management of ratoon cane since March. Through a combination of public outreach, mechanization, technical support, and incentive subsidies, the mill has successfully enhanced farmers' enthusiasm and efficiency in cane management, laying a solid foundation for a bountiful harvest this year.
As of April 8, 2026, calculations based on ICE raw sugar futures and the RMB exchange rate show that the estimated processing and tax-paid cost for Brazilian sugar within quota is approximately 3983 RMB/ton, while out-of-quota sugar costs around 5058 RMB/ton. Compared to Rizhao spot white sugar prices, the estimated profit for in-quota imported sugar is 1547 RMB/ton, and for out-of-quota sugar, it is about 472 RMB/ton.
Longchuan County in Yunnan, once plagued by sugarcane leaf burning, has innovatively transformed sugarcane leaves into valuable resources like feed, fertilizer, substrate, and energy, achieving a 94% utilization rate. This pioneering model not only boosts farmers' incomes and mitigates pest issues but also significantly protects the environment. It fosters the synergistic development of the sugar industry and ecological agriculture, showcasing Longchuan's remarkable progress in green development.
On April 9, 2024, China's domestic sugar market saw a general downward adjustment in quotations. Guangxi white sugar spot prices settled at 5273 yuan/ton, down 12 yuan/ton. Both Guangxi and Yunnan sugar groups lowered their price ranges by 10 yuan/ton, with some processing plants also reducing their offers. Trading activity remained subdued due to the traditional off-season for sugar consumption.
According to CEPEA, rice trading in Rio Grande do Sul, Brazil, has been limited due to seller withholding, holidays, and anticipated official auctions. Despite recent price increases, farmers believe current levels do not adequately cover production costs, leading to reduced supply and persistently low market liquidity.
BTG Bank has downgraded its recommendation for sugar-energy companies São Martinho, Jalles, and Adecoagro to 'neutral.' This revision stems from the expectation that the Brazilian government will not allow the full pass-through of rising international oil prices to domestic gasoline prices, likely opting to reduce fuel taxes to mitigate consumer impact, especially in an election year.
Amid a surge in oil prices, Brazil's ethanol production for the 2026/27 sugarcane season, starting in April, is projected to increase by 16% to approximately 43 billion liters. This boost is primarily driven by the government's decision to raise the ethanol blend in gasoline from 27% to 30%, with potential further increases to 35%.
After extensive negotiations, the Brazilian Sugarcane Industry Association (Unica) and the Organization of Sugarcane Producers Associations of Brazil (Orplana) signed an MOU to update Consecana-SP guidelines. This update aims to bolster cooperation between industry and growers by introducing a 4.5% adjustment factor, ensuring a technical floor for growers, while maintaining legal stability for existing contracts.
Brazil's sugar exports in March fell 1.4% year-on-year to 1.8 million tons, with average prices dropping 23.6%, leading to a 24.7% revenue decrease. However, cumulative first-quarter exports reached 6.05 million tons, a 5.8% increase from the previous year. Despite this volume growth, a 23.5% decline in average prices resulted in a 19.1% year-on-year decrease in Q1 revenue, totaling US$2.22 billion.
Brazil exported 72.23 million liters of ethanol in March, according to data from the Secretariat of Foreign Trade (Secex). While this represents a 68.4% decrease compared to the same period last year, it marks a 23.6% increase from February. The average price of the biofuel rose by 7% to US$612.13/m³, generating a total revenue of US$44.22 million.
Based on the ICE raw sugar futures price and RMB exchange rate on April 7, 2026, the estimated post-tax cost for in-quota Brazilian sugar is approximately 4061 RMB/ton, while out-of-quota sugar is around 5160 RMB/ton. Compared to Rizhao white sugar spot prices, the estimated profit for in-quota imports is 1469 RMB/ton, and for out-of-quota imports, it's 370 RMB/ton, offering crucial insights for market participants.
On March 18th, Guangxi Dongzhong Customs efficiently processed the first cross-border import of sugarcane for Shangsi County, Fangchenggang City. A truck carrying 30 tons of Vietnamese sugarcane cleared customs in just 20 minutes. This successful clearance opens a new import channel at Dongzhong Port, providing a stable raw material supply for local sugar refineries and significantly contributing to the stable development of Guangxi's sugarcane industry.
Liujiang District, a major sugarcane producing area in Guangxi, has achieved high-quality development in its sugar industry through a strategy of stable cultivation, enhanced processing, extended industrial chains, and innovation-driven growth. This crushing season, total sugarcane output is projected to reach 1.4946 million tons, with an estimated value of 807 million yuan. By promoting improved varieties, upgrading mechanization, enabling digitalization, and enhancing processing capabilities, Liujiang's sugar industry has significantly boosted farmers' incomes and injected strong momentum into rural revitalization.
ICE raw sugar futures fell on Monday, with the May contract closing at 14.97 cents per pound. Prices were pressured by expectations of increased global supply, following reports of a 9% rise in India's sugar production for the 2025/26 season. However, the appreciation of the Brazilian Real helped limit losses by slowing down Brazilian exports.