India’s Biria Group expects to raise its output of Ethanol to 330,000 liters from earlier projections of 200,000 liters. Production crush of cane is now up to 57,000 long tones per day up from 44,000 long tones.

What this means is India will have a world record for its crop this year, this is a gigantic crop.

Peru is expecting to produce 885,000 long tons this year. What this means is that Peru will be self sufficient as far as sugar this year and they just might go to the market with so overage.

Brazil is once again in the fore front by creating what they are calling, “Farm Zones”. The plan is to save the rainforest by laying zones just for cane and keeping farmers from clear cutting the rainforest. They plan to layout 500,000 hectares of new sugar planting by year end.

What this has done so far is to allow 31 million tons of sugarcane to come in this year which is a 29% increase from 20004-05. What this has caused is the possibility that the storage tanks in Paranagua Port in Parana will not have room for all the 35 million liters of Ethanol coming in to the holding area.

Here is something to look at:

Thai Cane just sold 12,085 tons of raw to Japan’s Itochu Corp. for just one cent over Nybot raw. The margins are falling apart. This number tells us that there working for jobs and at break even.

One other thing to keep in mind. We have a lot of corn still in the bins. US stocks were bumped up 125 million bushels to 877 million bushels and feed demand has dropped 8% over the winter due to high prices. This means more products on hand for ethanol production and more corn for sweeteners. Lots of corn and a lot more sugar and in some cases record yields means lower global prices.

We’re short at the 10 cent levels and think that we will see lower prices going into this summer.