H2 July sugarcane crush in Brazil's Parana state rises 9.7% on year: Alcopar

09.08.2017

The amount of sugarcane crushed in Brazil's Parana state in the second half of July totaled 3.52 million mt, up 9.7% compared with a year ago and up 4.7% on the previous two weeks' total, data from the Bioenergy Producers Association of Parana (Alcopar) showed Tuesday.

Drier weather in the second half of July continued to favor harvesting and resulted in the highest crush total for a two-week period since the first half of August 2015, when the state crushed 3.69 million mt, data show.

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

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The 2017-18 Center-South sugarcane season started on April 1. The cane's total recoverable sugar (ATR) in H2 July was boosted by the dry weather, reaching 142.57 kg/mt of sugarcane, up 3.6% from the year-ago period and up 2% from the first half of the month.

The percentage of the sugarcane crushed that was directed to produce ethanol was 37.84%, compared with 42.57% in the same period last year and 38.4% in H1 July.

Ethanol production totaled 109.68 million liters in the reporting period, up 0.7% year on year and up 5.4% from the first half of the month.

Of that total, hydrous ethanol accounted for 50 million liters, while the balance was anhydrous ethanol.

The balance of the sugarcane -- 62.16% -- was used to produce 298,420 mt of sugar, up 23% year on year and up 7.9% from the first half of July.

Producers have directed more sugarcane towards sugar production at the expense of ethanol output as sugar prices in both the domestic and export markets has paid out better than ethanol.

In the first four months of the season, the amount of sugarcane crushed in Parana totaled 17.26 million mt, down 16.6% from the same period last year, data show.

That amount represents 46.9% of the 36.76 million mt expected to be crushed this season, according to Alcopar estimates released in May.

The percentage of cane allocated to produce ethanol so far this season is 40.75%, compared with 43.94% in the same period last season, with the balance directed to sugar.

With the decrease in the amount of cane directed towards ethanol production, output in the four months starting April 1 was down nearly 22% year on year at 539.4 million liters, with hydrous ethanol accounting for 51% of the total, according to Alcopar.

Cumulative sugar production so far this season is nearly 1.3 million mt, down 11% year on year.

The average ATR was 132.52 kg/mt, up from 131 kg/mt in the same period a year ago.


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