Brazil attempts to bolster sugar prices

07 May 1999

Brazil attempts to bolster sugar prices

THE Brazilian government intends to buy about 2 billion litres of fuel alcohol from local stocks to add to its strategic stock in an effort to bolster sugar prices.

Heavy oversupply in the alcohol market has encouraged farmers to divert their can into sugar production, adding to the pressure on sugar prices.

Sugar prices have recently hit 13-year lows.

• Financial Times 07/05/99 page 32