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Brazilian Sugar Production

Posted by admin at 04 Mar, 2019

Sugar production in south-central Brazil in the new sugarcane harvest, which begins in April, was estimated at 29.7 million tonnes, well above the initial estimate of 26.4 million tonnes in October 2018.

Brazil projects sugar production in the south-central region in 2019/20, at 29.7 million tons.

In the current harvest, almost completed, sugar production in the center-south is estimated at 26.5 million tons. Datagro also revised its estimate for mid-south sugarcane milling next season to 583 million tonnes, up from 570 million tonnes in October, saying rainfall has improved the condition of sugarcane. For the current cycle, which ends in March, the consultancy sees the processing of sugarcane at 570 million tons. Ethanol production was projected at 30.2 billion liters in the center-south in 2019/20, compared to 30.5 billion liters in 2018/19.

Brazil has reduced its sugar production by almost 10 million tons in the coming season, with mills allocating a record amount of sugarcane to ethanol production. The units used only 35 percent of the raw material to produce sugar as overall sweetener prices remained low.

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Despite projecting more sugar production in 2019/20, Datagro's president still sees mills directing more sugarcane to ethanol early next season, as demand for biofuel in Brazil remains strong and its prices provide better returns. He said the current prices of hydrous ethanol in São Paulo, the country's largest fuel market, are equivalent to a hypothetical value of 15.26 cents per pound of raw sugar.

2 COMMENTS

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Luciano A.
Mar 17, 2019

O Brasil deve produzir 31,7 milhões de toneladas de açúcar na atual safra 2018/19, um corte de 7,3% ante a previsão anterior, feita em agosto 18, de 34,2 milhões de toneladas.

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Maria R.
Mar 15, 2019

The reduction comes amid the country's greater preference for ethanol, which has been more competitive than sugar throughout the year.

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Wellington P.
Mar 09, 2019

The volume would be 16.2% lower compared to 2017/18, the lowest in about 10 years and could lead the country to lose to India the position of global leader in the production of sweetener.

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