# Oil Isn't Really Driving Sugar's Rally - Brazil's Cane Switch Is | AInvest

> Intelligence firm Veeries projects Brazilian ethanol output rising 10% to a record 46.3 billion liters, while demand grows only 6% to 41.2 billion liters. Mills are reportedly allocating 49% of 2027/28 cane to sugar, with seven new plants also cited as adding to the surplus.

- Date: 2026-11-12 · published 2026-11-12T06:10:13.037Z
- Category: market · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/94997-oil-isn-t-really-driving-sugar-s-rally-brazil-s-cane-switch-is-ainvest
- Commodities: [Ethanol](https://feedsoft.ai/c/ETHANOL.md)

## Why it matters

A growing ethanol glut and a shift of cane toward sugar weigh on sugar prices and reduce the sugar-cane byproduct economics that feed producers rely on. Feed buyers should watch for softer molasses and ethanol co-product pricing.

## Read by commodity

- ETHANOL: bearish ▼

## Sources

- ainvest.com: https://www.ainvest.com/news/oil-isn-driving-sugar-rally-brazil-cane-switch-2611/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.