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.”
Having a good read on fuel prices is a must during harvest, but one analyst says grain farmers should also be watching the crude oil markets.
October 17, 2025 01:26 PM
·
The new antitrust agreement between the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) aims to enforce antitrust laws and monitor market activity across the ag sector.
October 17, 2025 12:27 PM
·
Large carryover stocks continue to put pressure on commodity prices, creating uncertainty for growers looking to market their grain.
October 16, 2025 04:20 PM
·
Record crops are increasing grain storage needs, prompting safety experts to remind producers of the risk of grain bin entrapment during harvest.
October 16, 2025 01:26 PM
·
The impacts of the government shutdown have reached commodity growers with crops to move, ag economists monitoring the harvest without key data reporting, and meat producers in need of new export markets.
October 16, 2025 01:03 PM
·
In a statement provided to RFD-TV News, a USDA spokesperson reiterated President Trump and the USDA’s commitment to farmers in difficult economic times.
October 16, 2025 11:57 AM
·
