OPEC's Next Move Is Being Closely Watched by Sugar Traders
- Any oil price move could have knock-on effect in sugar market
- That’s because biofuel made from cane competes with gasoline
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As energy minsters meet in Vienna this week to discuss oil-supply cuts, the sugar world will also be keeping a close eye on the outcome.
That’s because energy costs may be a key driver of sugar prices in the coming months as they determine the allure of ethanol, a biofuel made from sugar cane. Higher gasoline prices can encourage mills in top sugar producer Brazil to turn more cane into ethanol at the expense of the sweetener.