CS Brazil April 1-Dec 1 sugar output surges 44.16% on year to record high

New York — Sugar production in Center-South Brazil between the start of the 2020-21 season on April 1 and Dec. 1 surged 44.16% year on year to a record high of 38.09 million mt, data from trade association UNICA showed Dec. 10.

The amount of sugar produced in the second half of November was 427,000 mt, a 22.61% jump year on year because sugar's share of the crush was 35.55% compared with 23.85% a year earlier.

Sugar's share of the crush over April 1-Dec. 1 was 46.30% compared with 34.59% a year earlier.

Mills in CS Brazil crushed 8.74 million mt of sugarcane in H2 November, down 19.69% year on year, UNICA said.

"The reduction in the cane crush for H2 November was because more mills ended their season earlier than last year due to a faster pace of crushing," a Sao Paulo-based trader said.

The cumulative crush up to Dec. 1 totaled 594.88 million mt, 3.32% higher year on year.

Total recoverable sugar (ATR) in H2 November averaged 144.18 kg/mt, an increase of 2.45% year on year. The cumulative ATR for the 2020-21 season to Dec. 1 was 145.13 kg/mt, up 4.24% year on year. Sufficient rain during the summer and persistently dry weather in CS Brazil since April 1 allowed the cane to develop well and have a high sucrose concentration.

Sixty one mills concluded the harvest during H2 November, with 214 now having completed their crushing for the 2020-21 season. Market participants expect another 32 mills to conclude their harvest during H1 December.

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

Ethanol production, sales

Ethanol production in CS Brazil was 587 million liters in H2 November, down from 757 million liters a year earlier, UNICA said. Hydrous ethanol production accounted for 234 million liters of the total, while anhydrous ethanol output was 353 million liters, it said.

During H2 November, 176 million liters of hydrous ethanol was converted into anhydrous ethanol, according to UNICA.

Cumulative 2020-21 ethanol production to Dec. 1 totaled 28.91 billion liters. The quantity of hydrous ethanol produced was 19.51 billion liters. The quantity of anhydrous ethanol produced was 9.41 billion liters.

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 1.64 billion liters, with 115.88 million liters produced in H2 November, UNICA said.

Ethanol sales by mills in CS Brazil in 2020-21 from April 1 to Dec. 1 totaled 20.47 billion liters, 11.75% lower year on year. The quantity of hydrous ethanol sold was 13.78 billion liters, 15% lower. The quantity of anhydrous ethanol sold was 6.69 billion liters, 4% less.

Ethanol sales by mills in CS Brazil during H2 November totaled 1.40 billion liters, with 1.29 billion liters going to the domestic market and 102.43 million liters for export. The quantity of hydrous ethanol sold was 948 million liters, down 6.58%. The quantity of anhydrous ethanol sold was 449.23 million liters, up 4.85% year on year.

Cumulative sales of ethanol for non-fuel purposes totaled 908 million liters since the start of the cane harvest, an increase of 33.33% year on year. The jump in non-fuel ethanol sales was driven by strong demand for hand sanitizer because of the coronavirus pandemic.