Sugar Seen Falling More to Boost Ethanol Output, Cut Surplus

Sugar may fall another 6 percent in New York this year and prompt millers in Brazil, the world’s largest producer, to make more ethanol from cane at the expense of the sweetener, helping curb the global surplus.

Raw sugar futures traded in New York will drop to 17.66 cents a pound this year, according to the mean of 27 analyst and traders estimates compiled by Bloomberg at the Kingsman sugar conference in Dubai this week. Ethanol production in Brazil’s center south will climb 14 percent in the 2013-14 marketing year that starts there in April, according to Brazil-based Copersucar SA, which produces sugar and ethanol.