Adecoagro just downgraded at JPMorgan, here’s why

JPMorgan downgraded Adecoagro to Underweight from Neutral with a price target of $10.50, down from $11.50. India’s recent discussions to discourage ethanol production in favor of bolstering local sugar supply is “unsettling the anticipated global sugar market dynamics,” the analyst tells investors in a research note. The firm says that even if not implemented, the possibility of a big step-back in India’s blending program is a “game-changer” for the status quo and consensus of multi-year tightness of the sugar market. This news drives the share downgrade.