Sugar prices have stopped falling because the market speculates that sugar factories will shift towards using more sugarcane for ethanol production.

The price of raw sugar in New York has stopped falling as the market speculates that sugar mills will turn to using more sugarcane for ethanol production rather than making sweeteners. The most active futures contract rose 1.3% at one point, but then the gains narrowed. Prices have been declining in recent weeks, with last Friday closing at a four-year low, largely due to expectations of ample supply from major sugar-producing countries. Currently, the market is beginning to worry that the production in Brazil, the world's largest sugar exporter, may be affected by weak prices.