CS Brazil H1 March ethanol sales up 11% on year: UNICA

New York — Cumulative sugar production in Center-South Brazil between the start of the 2020-21 season on April 1 and March 16 totaled 38.28 million mt, up by 44.3% on the year, data from trade association UNICA showed March 25.

The amount of sugar produced in CS Brazil in the first half of March was 51,000 mt, with sugar's share of the crush at 31.4% compared with 14.1% a year earlier, according to UNICA.

Sugar's share in the crush over April 1-March 16 was 46.2% compared with 34.4% a year earlier.

Mills in CS Brazil crushed 1.67 million mt of sugarcane in H1 March, down 43.25% from the year-ago period, UNICA said. Almost 70% of the raw material was used for ethanol production.

The cumulative crush up to March 16 totaled 600.47 million mt, a 3% increase on the year.

Total recoverable sugar (ATR) in H1 March averaged 172 kg/mt, a decrease of 43.5% year on year. The cumulative ATR for the 2020-21 season to March 16 was 144.97 kg/mt, an increase of 4.3%.

There were 21 sugarcane mills, nine corn mills, and five plants processing raw materials operational at the end of H1 March. A preliminary survey conducted by UNICA indicates 24 additional mills to start the harvest during H2 March. A total of 169 mills are expected to be in operation by Apr. 15.

Maximum sugar production has been encouraged by sugar production paying much better than ethanol and the weaker Brazilian real boosting overseas demand for exports.

Ethanol production, sales

Ethanol production by CS mills in 2020-21 from April 1 to March 16 was 29.99 billion liters, down 9% from 32.80 billion liters a year earlier, UNICA said. Hydrous ethanol production accounted for 20.31 billion liters of the total, while anhydrous ethanol output was 9.69 billion liters, it said.

Ethanol sales by CS mills during H1 March totaled 1.24 billion liters or 11% more than a year earlier, with 1.17 billion liters going to the domestic market and 69.27 million liters for export.

Of the total, hydrous ethanol sales accounted for 778.59 million liters, up 11.13% on the year, while anhydrous ethanol sales totaled 390.26 million liters, up 1.85%.

"Hydrous ethanol sales in H1 March were much better than expected, but these sales occurred before the strictest form of quarantine levels were enforced in Sao Paulo state," said a Sao Paulo based trader. "Hydrous ethanol sales in H2 March should show declines on the year."

Ethanol sales by CS mills in 2020-21 from April 1 to March 16 totaled 29.62 billion liters, 7.7% lower year on year, with 27.02 billion liters going to the domestic market and 2.60 billion liters for export.

Although ethanol sales to the domestic market showed an 10.8% decline year on year, ethanol sales to the international market were up 45%. The fall in domestic demand was driven by the impact of the coronavirus pandemic on the Brazilian economy.

Corn ethanol production CS mills during H1 March was 127.60 million liters, UNICA said. Cumulative 2020-21 corn ethanol production to March 16 was 2.42 billion liters, an increase of 60.9% on the year.