Accelerated milling reinforces the global supply of sugar and ethanol.

The strong pace of milling in the Center-South region throughout October increased sugar production and reinforced the scenario of greater global supply, according to Agro Mensal, a report produced by Itaú BBA. The combination of a high sugar mix and recovery in industrial yields has kept production strong in recent months.

In the international market, raw sugar prices operated at a lower level, reflecting the replenishment of global stocks and increased global availability. The scenario remains sensitive to the behavior of oil and weather conditions in important producing countries, factors that continue to be closely monitored by the sector.

In the domestic market, hydrous ethanol showed signs of recovery throughout the month, favored by greater competitiveness against gasoline and a gradual improvement in consumption. Itaú BBA's Agro Consulting firm points out that the balance between supply and demand remains constructive in the short term, although prices continue to depend on the pace of restocking at gas stations.