Sugar prices settled higher on Tuesday after Brazil approved a higher ethanol blend in its gasoline, which could potentially boost ethanol demand and prompt Brazil's sugar mills to boost ethanol output at the expense of sugar. October NY world sugar #11 closed up 0.13, or 0.88%, and August London ICE white sugar #5 closed up 0.30, or 0.06%. Brazil's National Energy Policy Council approved a resolution that raises the mandatory blend of anhydrous ethanol in gasoline to 32% from the current 30%. Prices had tumbled to two-week lows on Monday amid an improvement in India's monsoon rains, with cumulative rainfall 19% below normal as of July 13, a substantial improvement from 42% below normal on June 30. Support also came from strength in crude oil prices, with WTI crude oil rising more than 1% to a one-month high, which benefits ethanol prices and could persuade global sugar mills to divert more cane crushing toward ethanol production rather than sugar, thus curbing sugar supplies.