Brazil sugar production expected to decrease almost 3% — S&P Global Platts
Sugar production in the key Center-South Brazil region is expected to total 2.951 million tonnes in the first half of July, down 2.6% year on year, an S&P Global Platts survey of 10 analysts showed July 21.
It is reported by S&P Global Platts.
Of the analysts surveyed, the cane crush estimate ranged from 42.3 to 47.7 million tonnes. The average estimate was for a total cane crush of 45.2 million tonnes, a 3.3% drop year on year.
Weather in the Center-South region was favorable for crushing during H1 July, with an estimated 0.2 days lost to rain and about 259-265 mills active as of July 16.
The proportion of cane used for sugar production is expected to be 47.4%, down from 47.9% a year earlier. Although Brazilian producers were taking advantage of the recent high prices of hydrous and anhydrous ethanol, long-term expectations are for mills to continue to maximize their sugar production, given the increased profitability of sugar production over ethanol production.
Recoverable sugar per ton of sugar cane, or ATR, is expected to be 145.0 kg/t, an increase of 2.1% year on year.
Total ethanol output from sugar cane is expected to be 2.10 billion liters, an increase of 3.0% year on year.
Hydrous ethanol output was expected to be 1.24 billion liters, according to the average of the analysts' responses to the survey. This would be a decrease of 10.7% year on year. Anhydrous ethanol output in H1 July was expected to be 856 million liters, an increase of 32.7% year on year, according to the survey.