Brazil's Center-South sugarcane crush in H2 Oct down 18% on year at 31.7 mil mt: UNICA

17.11.2016

The amount of sugarcane crushed in Brazil's Center-South in the second half of October was 31.74 million mt, down 18% year on year and down 1% from the prior two weeks, industry association UNICA said Wednesday.

UNICA said 23 mills ceased operations in H2 October, totaling 55 units already in intercrop period as of November 1, compared with 18 mills in the same period last year.

Yields in October fell 15.06% year on year to 65.74 mt/hectare.

Total recoverable sugar (ATR) was 137.4 kg/mt of cane, down 2.2% on the year and down 10.9 kg/mt from H1 October.

The percentage of cane to produce sugar in H2 October was 49.31%, from 42.14% last year. The balance was used to produce ethanol.

Ethanol production in H2 October fell 29.3% year on year to 1.3 billion liters.

Anhydrous ethanol accounted for 48% of the total, while the balance was hydrous.

Sugar production was 2.05 million mt, down 6% year on year.

The volume crushed was slightly higher than market expectations at 31.45 million mt, while sugar and ethanol production was practically the same as market expectation at 2 million mt and 1.33 billion liters respectively, according to an S&P Global Platts survey released Friday.

Since the season began April 1 through November 1, the amount of sugarcane crushed totaled 537.3 million mt, up 4% year on year.

The accumulated ATR was 134.10 kg/mt, up 0.3% year on year.

Cumulative sugarcane directed to produce sugar so far this season was 46.71%, from 41.87% last season.

Cumulative sugar production amounted to 32.07 million mt, up 16.6% on the year, while ethanol output fell 4% year on year to 22.57 billion liters.

Of the total ethanol, hydrous output was down 11% from a year ago to 13 billion liters, while anhydrous rose 7% to 9.55 billion liters.

Ethanol sales to the domestic market in October were nearly 2.04 billion liters, down 18% from a year earlier and down 8% from September, UNICA data showed.

Most of the hydrous ethanol produced is used as a biofuel in flex-fuel vehicles, while most of the anhydrous is used to mix with gasoline at a ratio of 27%, according to the country's mandate.

Both products are also used in industry and exported.


platts

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