All sugar companies are holding high sugar stocks. And with low ethanol production & sales in Q1 & Q2. It seems Q1 financial performance is going to be very poor across the board… but again long term i think should be good.
Companies not going for expansion but focusing on efficiency and cash flow (and share buy back) will do very well. If margins on grain based ethanol do not improve then even repayment of debt can become a challenge. Once some ethanol capacities (both cane and grain based) shut down then the industry balance will be achieved.
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