Commodities 2023: Brazilian ethanol price drivers to remain volatile

Sugar’s strong price premium over ethanol, unknown changes in the ICMS tax rate, and volatility in the Brazilian real/US dollar exchange rate will remain key drivers for Center-South ethanol prices in 2023. Sugar premium over ethanol “Crushing during the 2023-24 crop will be primarily focused on sugar production in the first few months of the crop cycle because our forward-looking…