Flex Fuel Vehicle Sales and Brazilian Demand Fueling Higher Sugarcane Prices Making Peru Sugarcane Production Extremely Favorable
Brazil is one of the largest sugarcane markets in the world and their demand continues to rise. They currently produce 22 billion liters of ethanol a year, 81% of this fuel is used domestically. This is due to the fact that Flex Fuel vehicle sales have increased 85% year over year, markedly increasing demand for Sugarcane. Growers can earn far more on Sugarcane for Ethanol production leading many to do so. Currently Sugarcane for Ethanol production equals 50% of total production and Morgan Stanley research expects it to reach 60% of sugarcane demand in the coming years. This makes Stratos…