Brazil's Ethanol Output Forecast to Hit Record 41.4 Billion Liters in 2026/27, Datagro Says

According to Datagro, Brazil's ethanol output is forecast to reach a record 41.4 billion liters in the 2026/27 harvest year, with sugar production expected at 44.2 million tons. The country's sugarcane processing volume is estimated at 698 million tons.

In the Central-South region, ethanol output is projected at 386.1 billion liters with 40.98 million tons of sugar. Datagro attributes the shift toward higher ethanol production to rising energy prices following Middle East tensions, with mills prioritizing ethanol output over sugar production. Globally, the sugar market is expected to swing from a 570,000-ton surplus in 2025/26 to a 3.17-million-ton deficit in 2026/27.