Sugar Futures Increase as Higher Crude Oil Price May Boost Ethanol Demand

(Bloomberg) -- Sugar rose in New York on speculation
that higher energy prices may spur demand for ethanol, an
alternative fuel made from cane in Brazil.

Crude oil reached an 11-month high earlier today and has
increased 22 percent this year. Mills in Brazil's center-south
region, the source of 85 percent of the country's sugar cane,
produced more ethanol and less of the sweetener this season as of
July 1 compared with the previous year, the Center South Sugar
and Ethanol Industry Association, known as Unica, said last week.


Read more at Bloomberg Commodities News

Sugar Rises on Speculation Brazil Is Using More Cane to Produce Ethanol

(Bloomberg) -- Sugar futures in New York rose on
speculation mills in Brazil, the biggest producer, may turn more
of a record sugar cane crop into ethanol and make less of the
sweetener than expected.

Mills in Brazil's center-south, the main sugar cane-growing
area, have turned less than 45 percent of the crop into sugar,
said Antonio Padua, technical director of the Center-South Sugar
and Ethanol Industry Association, known as Unica. Producers may
turn 55 percent of the harvest into ethanol, he said June 25.


Read more at Bloomberg Commodities News