Brazil's Parana sugarcane crush in H1 September rises 10% year on year

23.09.2016

Sugarcane crushed in Brazil's Parana state in the first half of September was 2.41 million mt, up 10% from same period a year ago and up 28% from the prior two weeks, data from the Bioenergy Producers Association of Parana, or Alcopar, showed Thursday.

Although the second half of August had 16 days of crushing -- one day more than the first half of September -- the crushing was hampered due to more than three days lost to rains. Each day lost to rain represents at least 250,000 mt less cane crushed, according to Alcopar.

Parana is one of the largest state producers in the key Center-South region. The 2016-17 season began April 1.

About 39.3% of total cane crushed was used to produce ethanol, while the balance, or 60.7%, was directed to sugar production, compared with 42.66% for ethanol and 57.39% for sugar during the same period last year.

Cane's total recoverable sugar -- known as ATR -- in H1 September was 136.29 kg/mt of cane, down 5.5% from a year ago and down 10.56 kg/mt from prior two weeks.

Sugar production in H1 September increased 10% year on year to 190,588 mt, while ethanol output amounted to 74.6 million liters, down 4.9% year on year.

Of the total ethanol, anhydrous accounted for 50.4%, or 37.6 million liters, up 24% on year. The balance, or 37 million liters, was hydrous, down 23% on year.

Hydrous ethanol is mainly used in flex-fuel vehicles, while anhydrous is most mixed with gasoline at a ratio of 27%, according to a national mandate.

From the beginning of the season through September 16, sugarcane crushed totaled 28.04 million mt, down 0.3% year on year. This amount represented 65% of the total volume expected to be crushed this season, according to Alcopar estimates released in March.

The percentage of cane allocated to produce sugar so far this season was 57.18% from 53.31% during the same period last year, while the balance was directed to ethanol production.

Cumulative sugar production through September 16 was 2.05 million mt, up 5.6% year on year.

Cumulative anhydrous output was 6% higher year on year at 405.6 million liters, while hydrous output declined 19.5% on year to 527 million liters.

Anhydrous production has been favored due to higher domestic demand for the product on lower demand for hydrous.

The accumulated ATR was down 1.3% year on year at 133.90 kg/mt.

Industry association UNICA is expected to release production figures for the whole Center-South region on September 30.


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