By Roberto Samora and Marcelo Teixeira
SAO PAULO/NEW YORK, Might 26 (Reuters) – Brazil’s center-south sugar and ethanol manufacturing within the first half of Might progressed above expectations, catching up with earlier delays within the season and nearing ranges seen at the moment final season when the nation had a report sugar crop.
In line with a bi-weekly report from business group Unica launched on Wednesday, center-south mills produced 2.37 million tonnes of sugar within the first half of Might, solely 4.4% lower than in the identical interval a yr earlier.
Cane crush was at 41 million tonnes, 3% under 2020, whereas ethanol manufacturing was 0.6% under final yr’s ranges at 1.81 billion liters.
Market expectations, presumably influenced by the poor outcomes seen in earlier studies, had been for sugar manufacturing at 2.18 million tonnes, cane crush at 38.eight million tonnes and ethanol manufacturing of 1.6 billion liters, in line with S&P World Platts.
“The numbers had been bigger than anticipated. That explains maybe a few of the selloff,” stated a U.S.-based dealer.
Sugar costs had been down round 2% in New York after the report.SBc1SOF/L
Till the earlier report, cane processing and sugar manufacturing had been method under the earlier season, as mills delayed the begin to the harvest as a result of poor cane improvement attributable to drier-than-normal climate.
There was additionally enchancment on industrial yields as the quantity of sugar per tonne of cane that’s processed jumped to 131 kg/tonne, 0.39% greater than at the moment in 2020.
Antonio de Padua Rodrigues, Unica’s technical director, stated that agricultural yields, or the quantity of cane per hectare, are most likely nonetheless under final yr ranges.
One other shocking quantity from the report was a bounce of practically 20% on manufacturing of anhydrous ethanol, the sort that’s blended in gasoline.
See detailed figures from Unica’s crop report (cane and sugar in million tonnes, ethanol in billion liters, complete recoverable sugar-TRS in kg per tonne):
BRAZIL’S CENTER-SOUTH – 1ST HALF OF MAY (ANNUAL COMPARISON)
2020/21
2021/22
% CHANGE
CANE CRUSH
42.33
41.06
-3.01
SUGAR OUTPUT
2.48
2.37
-4.39
ETHANOL OUTPUT*
1.82
1.81
-0.61
TRS (kg/T)
131.06
131.57
0.39
CANE TO SUGAR
47%
46%
BRAZIL’S CENTER-SOUTH CUMULATIVE DATA – 2020/21 VS 2021/22
2020/21
2021/22
% CHANGE
CANE CRUSH
103.04
86.30
-16.24
SUGAR OUTPUT
5.49
4.52
-17.51
ETHANOL OUTPUT*
4.42
3.83
-13.17
TRS (kg/T)
123.75
123.84
0.07
CANE TO SUGAR
45%
44%
Supply: Cane Trade Group Unica
* Contains corn-based ethanol
(Reporting by Roberto Samora and Marcelo Teixeira; extra reporting by Ana Mano; Modifying by Steve Orlofsky and Will Dunham)
(([email protected]; +1 332 220 8062; Reuters Messaging: [email protected] – https://twitter.com/tx_marcelo))
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