NASHVILLE, Tenn. (RFD-TV) — Global sugar markets are seeing a shake-up, and it is all tied to ethanol production. Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.
“One of the big demand factors in Brazil is ethanol from sugar, and in the last few years, because the price of corn got so undervalued that it’s actually much, much cheaper to produce ethanol out of corn than it is out of sugar,” Hacket said. “And so, all of the corn that they possibly can utilize to make ethanol is being utilized, so demand for corn-based ethanol is going through the roof.”
The dip in corn prices, followed by a rise in demand, is putting sugar in a pinch.
“The sugar processors are now trying to make as much sugar as possible, and they’re reducing that demand for ethanol, and that is significantly changing the equation of how much importable supplies they have to the open market,” Hackett explained. “That’s been really hitting sugar prices pretty hard, and that’s a big structural change that, until corn prices go up, sugar prices could be in an oversupply.”
Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
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Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.
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Decoupled base acres may amplify income inequality and distort planting decisions as farm program payments increase.
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Large Brazilian crops heighten downside price risk if the weather allows production to reach projected levels.
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Ethanol and corn groups are not hiding their disappointment over new reports that the bill to allow year-round E15 sales failed as Congress forges ahead on government funding, with another shutdown looming.
January 22, 2026 11:24 AM
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