A glut of raw sugar has forced Brazil's sugar mills to switch to ethanol and sugar production.

      As Brazil's sugarcane squeeze season begins, the country's sugar mills are doing everything they can to prevent raw sugar from entering the global market, in order to avoid a global glut that has pushed the price down to a two-year low.

      ICE sugar futures fell below 13 cents a pound, while production costs in central and southern Brazil were between 13.5 and 15 cents.

      "We need to reduce the supply of sugar to reduce global oversupply," says Hugo Cagno, a partner at Tereos, a French sugar group.

      This week, analysts at Datagro said they expected to produce 31.6 million tonnes of sugar in the south-central region in 2018-19, down from 36 million tonnes last year.

      Sugar mill owners, said sugar mill's action is obviously, those who can produce yeast sugar mill is as far as possible to b, b the yeast for domestic prices and demand are strong, the equivalent of sugar prices at about 17 cents per pound.

      Other well-capitated sugar mills are looking to stock up, waiting for sugar prices to rise and sell again -- a period likely to be early next year.

      Another strategy is to increase sugar production and sell it to domestic food and beverage companies.

      Turn from: guangxi sugar net.