Center-South Brazil April 1-Nov 1 sugar production surges 44% on year

Sao Paulo — Cumulative sugar production in Center-South Brazil between the start of the 2020-21 season on April 1 and Nov. 1 totaled 36.4 million mt, a 44% surge year on year, data from trade association UNICA showed Nov. 11.

The amount of sugar produced in the second half of October was 1.74 million mt, a 14.4% jump year on year because sugar's share in the crush was 43.6% compared with 32.0% a year earlier.

Sugar's share in the crush over April 1-Nov. 1 was 46.69% compared with 35.04% a year earlier.

Mills in CS Brazil crushed 26.79 million mt of sugarcane in H2 October, down 18.26% year on year, UNICA said.

"The reduction in the cane crush for H2 October was due to more days lost to rain compared with the same period of 2019," a Sao Paulo-based trader said. "Additionally, the reduction in the cane crush was because more mills ended their season earlier than last year due to a faster pace of crushing."

The cumulative crush up to Nov. 1 totaled 564.92 million mt, up 3.65% year on year.

Total recoverable sugar (ATR) in H2 October averaged 155.96 kg/mt, an increase of 2.73% year on year. The cumulative ATR for the 2020-21 season to Nov. 1 was 144.89 kg/mt, up 4.30% year on year. Sufficient rain during the summer and persistent dry weather in CS Brazil since April 1 allowed the cane to develop well and have a high sucrose concentration.

Thirty four mills concluded the harvest during H2 October, with 63 now having completed their grinding for the 2020-21 season.

Favorable weather, sugar production paying much better than ethanol and a weaker Brazilian real boosting overseas demand for exports will encourage maximum sugar production.

Ethanol production, sales

Ethanol production in CS Brazil was 1.51 billion liters in H2 October, from 2.06 billion a year earlier, UNICA said. Hydrous ethanol production accounted for 867.52 million liters of the total, while anhydrous ethanol output was 637.51 million liters, it said.

Cumulative 2020-21 ethanol production to Nov. 1 totaled 27.09 billion liters, down 9% year on year. The quantity of hydrous ethanol produced was 18.54 billion liters, 11% lower. The quantity of anhydrous ethanol produced was 8.55 billion liters, 5% less.

The reason behind the small drop in cumulative ethanol production when mills are maximizing sugar production was advances in milling technology and better-quality cane.

Cumulative corn ethanol production since the start of the cane harvest was 1.41 billion liters, with 126.31 million liters produced in H2 October, UNICA said.

Ethanol sales by mills in CS Brazil in 2020-21 from April 1 to Nov. 1 totaled 17.68 billion liters, 13.11% lower year on year, with 15.88 billion liters going to the domestic market and 1.80 billion liters for export. The 13.11% fall in demand in the domestic market was caused by the impact of the coronavirus pandemic on the Brazilian economy.

Ethanol sales by mills in CS Brazil during the whole of October totaled 3.02 billion liters, with 2.66 billion liters going to the domestic market and 358.02 million liters for export. The quantity of hydrous ethanol sold was 1.87 billion liters, down 12.75%. The quantity of anhydrous ethanol sold was 792.67 million liters, up 5.09% year on year.

Cumulative sales of ethanol for non-fuel purposes totaled 804.23 million liters since the start of the cane harvest, an increase of 34.76% year on year. The jump in non-fuel ethanol sales was driven by strong demand for hand sanitizer because of the pandemic.