Brazil's Parana sugarcane crush in H2 May up 39% on year: Alcopar

09.06.2017

The amount of sugarcane crushed in Brazil's Parana state in the second half of May was up nearly 39% from a year ago, but down 11% from the prior two weeks at 1.73 million mt, data from the Bioenergy Producers Association of Parana (Alcopar) showed Thursday.

The state is the fifth largest sugarcane producer in the key Center-South region, the largest sugarcane and sugar producing area in the world.

The 2017-18 season started officially on April 1. Industry association UNICA is expected to release the figures for H2 May for the whole CS in the coming days.

With the weather wetter than previous the previous two weeks in H2 May, the sugarcane harvesting was disrupted.

The cane's total recoverable sugar (ATR) in H2 May was 4.9 kg/mt of cane lower than the previous two weeks and 12.6 kg/mt below the same period in 2016, the data showed.

The percentage of the total cane crushed that was directed to produce ethanol was 43%, compared with 47.81% during the same period last year. Ethanol production totaled 54 million liters, up 12% on the year, but down 12.5% from H1 May.

Hydrous ethanol accounted for 51.4%, or 27.8 million liters, down 15% on the year and down 22% from H1. Anhydrous accounted for the balance, or 26.3 million liters, up 71% on the year and practically unchanged from prior two weeks.

The balance of the cane was used to produce 118,375 mt of sugar, up 37% on the year, but down 16% from first half of May.

Producers have directed more cane to sugar at the expense of ethanol amid higher international sugar prices.

In the first two months of the season, sugarcane crushed totaled 6.07 million mt, down 33% from same period last year, Alcopar said.

The amount crushed represents 16.5% of the total volume expected to be crushed during this season, according to Alcopar estimates released in May at 36.8 million mt.

The percentage of cane allocated to produce ethanol so far this season was 45.86%, compared with 46.27% in the same period last season, with the balance diverted to sugar.

Ethanol output totaled 198 million liters, down 38% year on year, while total sugar production amounted to 385,537 mt, down 36.5% on the year

Of total ethanol, 83.5 million liters were anhydrous, down 35% on the year, and the balance, 115 million liters, was anhydrous, down 39.5% on year.

The accumulated ATR was 122.69 kg/mt, down 5.8% from same period a year earlier.

2017-18 ESTIMATES

Alcopar revised down the expectation of the total cane crushed this season to 36.8 million mt, from 40.3 million mt expected previously. That represents a drop of 9% from previous season.

The amount of cane directed to ethanol was revised to 40.54% from 42.72% before. As consequence, ethanol production is expected to fall 13% on the year to 1.18 billion liters, with hydrous accounting for nearly 54% and the balance anhydrous.

Despite the rise in the total cane directed to sugar, sugar output is expected to fall 7% on the year to 2.85 million mt.

In the 2015-16 season, Parana crushed a record of 43.4 million mt, but the dry weather caused by the El Nino phenomenon reduced the amount of cane available last season and also the yields.


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