Rabobank trims its Apr-Jun forecast for raw sugar prices on ICE to 16.4 cents per pound from 17.7 cents citing lower ethanol parity. The most-active July contract was up 1.2% at 15.75 cents per pound. A fall in ethanol prices incentivises millers to shift to producing sugar instead of ethanol. Millers in key cane-producing countries like Brazil have a choice between producing sugar or ethanol. Of the total cane that would be crushed in 2017-18, around 47% is expected to be used for sugar production, and 53% to make ethanol, Brazil’s sugarcane industry association, known by its Portuguese acronym UNICA. In 2016-17, around 46.3% of the crushed cane was used for sugar production, while 53.7% was used to produce ethanol.