Brazil’s Conab cuts sugar, ethanol forecast amid drought, frosts

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Brazil’s Conab cuts sugar, ethanol forecast amid drought, frosts


SAO PAULO, Aug 19 (Reuters)Brazil minimize its forecast for 2021/22 sugar and ethanol output within the nation’s key center-south area as inadequate rain and an unusually harsh winter have had a big influence on yields.

Conab, the federal government company that makes agricultural estimates, mentioned on Thursday it anticipated 2021/22 sugar output to fall 11.3% from the prior season to 33.9 million tonnes.

Sugar cane crushing is prone to drop 10.6% from the final harvest to 538.7 million tonnes, Conab mentioned.

Corn and sugar-based ethanol manufacturing is forecast to say no 10.8% to 29.2 billion liters.

Unusually extreme frosts – and in some circumstances even snow – hit a number of Brazilian states’ southern and south-central areas in June and July. Mixed with an ongoing drought, yields for virtually all crops have been affected.

(Reporting by Nayara Figueiredo; Writing by Gram Slattery; Modifying by Jan Harvey)

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