Brazil Center-South sugar output exceeds expectations in second half April: UNICA

Brazil's Center-South sugar production during the second half of April exceeded market expectations as mills accelerated crushing activity at the start of the crop year 2026-27, according to data released May 27 by the Brazilian Sugarcane and Bioenergy Industry Association, or UNICA.

Sugar production during the second half of April totaled 1.80 million metric tons, up 109.48% year over year. The output exceeded expectations for 1.48 million mt, as indicated in a Platts survey of 12 analysts conducted prior to the UNICA report release. Platts is part of S&P Global Energy.

Market participants said the stronger-than-expected sugar output was partially offset by the continued shift toward ethanol production, with mills directing 59.66% of cane toward biofuel production during H2 April.

On a cumulative basis, sugar production since the start of the 2026-27 season reached 2.47 million mt as of May 1, up 55.24% from 1.59 million mt in the same period a year earlier.

Center-South mills processed 40.06 million mt of sugarcane during the second half of April, compared with 17.96 million mt in the same period last season, while cumulative crushing reached 60.46 million mt, up 74.58% year over year.

Cane quality also improved during the period. Average recoverable sugar reached 116.89 kg/mt of cane in the second half of April, up 6.34% year over year. On a cumulative basis, ATR stood at 112.58 kg/mt, 5.40% above the previous crop year.

Despite the stronger sugar production, mills continued to favor ethanol production over sugar. During the second half of April, 59.66% of cane processed was directed toward ethanol production, compared with 54.31% in the same period last season. On a cumulative basis, the ethanol mix reached 61.84%, compared with 54.77% a year earlier, while the sugar mix declined to 38.16% from 45.23%.

As a result, kilograms of sugar produced per metric ton of cane fell 6.11% year over year during H2 April and declined 11.08% on a cumulative basis.

Ethanol production in the second half of April reached 2.04 billion liters, up 105.85% year over year, while cumulative ethanol output since the start of the crop year totaled 3.29 billion liters, an increase of 71.84%.

Corn ethanol production totaled 392.48 million liters during the second half of April, up 9.37% year over year, while cumulative corn ethanol output rose 12.21% to 804.42 million liters.