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Brazil's sugar and ethanol producers are set to prioritize ethanol production for the 2026-2027 harvest due to rising biofuel prices and low sugar futures. Ethanol stocks in the center-south region dropped 20.7% year-on-year to 5.81 billion liters as of January 15, contributing to the highest ethanol prices in nearly three years.

Analysts predict that 53% of sugarcane will be allocated to ethanol in the upcoming season, reversing previous trends. Corn-based ethanol is also expanding, with production projected to reach 12 billion liters.