CS Brazil H2 May sugarcane crush down 2.8% year on year: UNICA

14.06.2017

    H2 May sugar output 1.75 million mt, up 4% year on year
    H2 May ethanol output 1.2 billion liters, down 17% year on year
    H2 May ATR down 5.8% year on year at 122.83 kg/mt

Center-South Brazil crushed 31.59 million mt of sugarcane in the second half of May, down 2.8% year on year, data from industry association UNICA showed Tuesday.

The 2017-18 sugarcane season started April 1 in the key Center-South region, the largest sugarcane and sugar producer in the world.

The volume crushed was roughly two million mt above market expectations, according to an S&P Global Platts survey last Friday.

UNICA said the drop was due to a delay in the start caused by bad weather conditions that interrupted the harvesting.

There were 256 mills operational as of June 1, compared with 264 a year earlier, according to UNICA. Another 10 mills were expected to start operations in H1 June.

There were 273 mills operational last season, according to UNICA's report for H2 July 2016.

Cane's total recoverable sugar (ATR) was 122.73 kg/mt of cane, down 5.8% on the year.

UNICA said the highest volume of rainfall and higher average temperature observed to date have induced the vegetative growth of the plant in detriment to ATR concentration. A higher ATR means sweeter is the cane.

The agricultural yields in May averaged 79.98 mt per hectare, down 5.9% from a year ago, according to data from the Cane Technology Center (CTC).

CTC used samples from 142 mills. January-May agricultural yields reached 79.13 mt/ha, down 9.1% year on year.

The reduction in yields was mainly due to a drop in the harvested area with cane bisada (leftover cane from the previous season) than a year earlier.

Of the total cane crushed in H2 May, 52.55% was used to produce ethanol, compared with 58.23% a year ago.

Ethanol from sugarcane and corn totaled 1.2 billion liters, down 17% year on year. The balance of the cane was used to produce 1.75 million mt of sugar, up 4%.

In the first two months of the season (April-May), the amount of cane crushed was 111.8 million mt, down 21% year on year.

Of that total, 45.15% was used to produce 5.7 million mt of sugar, down 19%. The balance was used to ethanol.

Ethanol production from cane and corn amounted to 4.3 billion liters, down 26.5% year on year.

Cumulative ATR was 118.36 kg/mt of cane, down 3.2% year on year.


platts

Readers choice: TOP-5 articles of the month by UkrAgroConsult