The volume crushed was about 280,000 tonnes below market expectations, according to an S&P Global Platts survey of analysts.

«This is the first fortnight in which the milling of the current crop fell short of that observed in the previous crop year. This reduction is concentrated in the states of Sao Paulo and Parana», — said Antonio de Padua Rodrigues, technical director at UNICA.

Data from the Sugarcane Technology Center showed a 10,5% decrease in the yield to 64,79 t/ha in September from 72,39 t/ha in September 2017.

The 2018-2019 sugarcane season began April 1 in the key Center-South region, the largest sugarcane and sugar producer in the world. But chronic dryness is widely expected to bring an early end to crushing, with the season seen closing a month to six weeks earlier than usual. Five mills have already ended their crushing, while another 32 mills are expected to stop operations by October 15, UNICA said.

Sugar production in Center-South Brazil in H2 September totaled 1,286 million tonnes, down 40,1% from H1 September production of 2,147 million tonnes, and down 55% from 2,859 million tonnes produced during the year-ago period, UNICA said. Production during the period missed estimates by 74,000 tonnes.

Brazilian mills have shifted production toward hydrous ethanol due to its greater profitability and strong sales. Hydrous ethanol output in H2 September reached 1,14 billion liters, down 26,9% from H1 September production of 1,56 billion liters, and down 0,1% from the year-ago period.

Anhydrous ethanol production in H2 September reached 494 million liters, down 29,1% from H1 September production of 697 million liters, and down 44,91% from the year-ago period.