Guarani, a company controlled by the cooperative group Tereos, officially started the 2016-17 sugarcane season Thursday, forecasting a rise in its cane crush of 1 million mt on the year to 20.5 million mt.

The director of the Brazilian division of Tereos, Jacyr Costa Filho, told an event in the city of Bebedouro to mark the start of the season that Guarani invested approximately Real 510 million (around $146 million) in sugarcane renovation, productivity growth and energy conservation. "All these factors will allow better results for the 2016-17 crop," he said.

Due to the first global sugar deficit in five years, sugar prices will remain supported on the international market in 2016, Guarani said.

"Ethanol prices will also be higher due to strong demand, which should remain stable or higher than last year, based on the biofuel sales records in 2015," Guarani Tereos Sugar and Ethanol Brazil CEO Pierre Santoul said.

As for the weather, agricultural director Jaime Stupiello said that 2016 began with rainfall above the historical average, influenced by weather phenomenon El Nino, however, as of May, it is expected to return to normal.