Analysts see perfect first half of May for Brazil sugar mills
Sugar mills in Brazil, the world's largest producer and exporter of the sweetener, had a very productive first half of May with no stoppages and a large sugarcane crush seen above 40 million tonnes for the fortnight, according to industry analysts.
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"In the center-south of Brazil no significant rains in May so far so no days lost," said Felippe Reis, crop analyst for EarthDaily Analytics.
A survey of 13 analysts by S&P Global Commodity Insights indicated that Brazilian mills processed 40.73 million tonnes of sugarcane in the first half of May, which would be nearly 19% more than in the same period a year earlier.
Industry group Unica will publish the numbers at 10 a.m. EDT on Thursday.
Mills in Brazil usually operate around the clock when the weather is dry, with machines harvesting throughout the night with GPS systems.
Particularly this year, they are keen to implement a quick harvesting pace since there were delays in April due to rains and the crop is projected to be near record. Also, sugar prices are hovering around the highest levels in 12 years.
S&P's survey indicated sugar production of 2.21 million tonnes in the first half of May, 31.9% more year on year.
"Some market players do not rule out the possibility of the cane crush making new historical highs for the period," said Luciana Torrezan, head of sugar analytics with S&P Global Commodity Insights.
Canada-based EarthDaily Analytics forecasts, however, the possibility of two days lost to rain in Brazil's center-south at the end of the month (May 30 and 31).
But it said the first week of June will get dry again to allow for harvesting resumption.
"The NDVI (vegetation index) remains above average levels and also higher than last year, which indicates better conditions in the current season," said Reis.