Analysts and traders say high energy prices are prompting Brazilian sugar mills to cancel sugar export contracts and in turn are pushing production towards Ethanol output. Some say the washouts are being accepted by mills when the price of cancellation is less than the higher margins for ethanol.

Analysts and traders say high energy prices are prompting Brazilian sugar mills to cancel sugar export contracts and in turn are pushing production towards Ethanol output.  Some say the washouts are being accepted by mills when the price of cancellation is less than the higher margins for ethanol.