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Sugar Week sparks hopes and fears as El Niño and Petrobras policy swing Brazil fuel demand
Economy
Published on 16 May 2026
Petrobras stable gasoline could push mills back toward sugar
New York Sugar Week ended amid near five-year lows, but traders are watching two volatile levers: Brazilian fuel economics and El Niño’s potential hit to India’s cane. With Brazil’s large crops already pressuring raw sugar, mills may shift cane toward gasoline-related ethanol, depending on the “sugar mix.” Estimates range as low as 45% versus last year’s 50.4%. Petrobras has held gasoline prices steady despite broader gains, affecting ethanol demand. Separately, El Niño-driven dryness could influence India output, at a time when exports are already curtailed and restrictions are debated for 2026-27.
- Raw sugar dipped to 14.72 cents per pound, down 1.8% Friday
- Sugar mix forecasts range from 45% to 48.5%, below last year’s 50.4%
- Petrobras kept domestic gasoline stable despite international price surges
- India export ban runs through September after harvest decline fears
- El Niño scenarios estimate India output down 4.6% to 27 million tons or flat
- Indian crop weakness could increase odds of extended export curbs in 2026-27
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times