NEW YORK, April 29 (Reuters) – Brazil’s center-south (CS) cane crush within the new season that simply began would be the lowest since 2012, in line with a report by commodities dealer and provide chain companies agency Czarnikow, as below-average rains harm cane growth.
Czarnikow initiatives CS cane crush at 558 million tonnes in 2021/22 (April-March) versus 605 million tonnes within the earlier crop.
“State of affairs within the CS cane fields is important – our discipline analysts have seen many areas the place the cane doesn’t appear to have developed,” stated Czarnikow Brazil analyst Ana Zancaner within the report.
In line with her, cumulative rains since October within the area have been 36% under regular, the driest in a decade. The state of affairs is just not worse for the crop as a result of mills have improved crop care within the final two years, the analyst stated, which is able to scale back losses.
Different merchants and analysts are additionally anticipating a poor sugar season in Brazil, equivalent to Asian agency Wilmar.
Czarnikow, nonetheless, stated the dry climate will at the very least improve sugar content material in cane, permitting for sugar manufacturing to fall lower than cane volumes.
It sees CS sugar manufacturing at 35.6 million tonnes versus 38.5 million tonnes within the earlier crop. Ethanol manufacturing was projected at 27.three billion liters in comparison with 30.four billion liters in 2020/21.
(Reporting by Marcelo Teixeira Modifying by Marguerita Choy)
(([email protected]; +1 332 220 8062; Reuters Messaging: [email protected] – https://twitter.com/tx_marcelo))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.