Center-South Brazil H1 May sugar output down 30% on year: UNICA

Sugar production in Brazil's Center-South region fell 30.10% on the year in the first half of May to 1.67 million mt, data from Brazilian sugarcane industry group UNICA showed May 25.

The figure was in line with consensus expectations of 1.67 million mt from 11 analysts surveyed by S&P Global Commodity Insights.

Mills in CS Brazil crushed 34.37 million mt of sugarcane in H1 May, down 17.04% year on year, UNICA said. Sugar's share of the crush for H1 May was 40.77%, compared with 45.99% a year earlier.

"The reduction in the cane crush for H1 May was because of the domino effect caused by the late start to the harvest and lesser mills in operation compared to the prior season," a Sao Paulo-based trader said.

A total of 232 mills were operating as of May 16, 4 fewer than in the same period of 2021. Market participants expected another 17 mills to begin operation in H2 May.

Total recoverable sugar, or ATR, in H1 May was 124.95 kg/mt, a decrease of 4.95% year on year.

Ethanol production, sales

Ethanol production in CS Brazil was 1.655 billion liters in H1 May, down 10.03% from 1.840 billion liters a year earlier, UNICA said. Hydrous ethanol production accounted for 1.061 billion liters, down 14.19% on the year, while anhydrous ethanol output was 594 million liters, down 1.50% on the year.

Corn ethanol production in H1 May was 161.44 million liters, an increase of 46.39% year on year.

Ethanol sales by mills in CS Brazil during H1 May were 990.82 million liters, 17.27% lower year on year, with 969.50 million liters going to the domestic market and 21.32 million liters for export.

The quantity of hydrous ethanol sold to the domestic market during H1 May was 605.58 million liters, down 24.31% on the year. The quantity of anhydrous ethanol sold to the domestic market was 363.92 million liters, down 4.85% on the year.