Brazil sugar production meets market expectations in early June

Sugar production in the center-south area of Brazil came in roughly in line with market estimates in the first half of June, data from industry group Unica showed on Tuesday, decelerating from the previous fortnight as rains that drove a jump in yields now hamper crush operations.

Sugar production in the period totaled 2.55 million metric tons, Unica said in a report, up 18.7% from a year earlier and meeting analyst consensus in a survey by S&P Global Commodity Insights.

The sugar export chart below was drafted using maritime data gathered with Datamar’s market intelligence service DataLiner.

Brazilian sugar exports | Jan 2019 – Apr 2023 | wtmt

Source: DataLiner (click here to request a demo)

That output came from the crushing of a total 40.3 million metric tons of sugarcane in the period, a 4.2% rise on a yearly basis but slowing down from the staggering 46.2 million metric tons processed in the second half of May.

That move had been largely anticipated by market players, who found that Brazilian mills had lost some three days of operations in the period because of rains – which, on the other hand, had contributed earlier in the season to a yield-boost.

Agricultural yields had “an extraordinary leap … reflecting a favorable rainfall regime in summer months,” Unica said in a statement, as it reported a jump of 26.2% in yields to 95.3 metric tons per hectare in May.

“But such a leap is expected to be softened when older sugarcane fields enter the harvest scheduled” later in the cycle, it added.

Total ethanol production in early June, Unica said, was 1.85 billion liters, up 1.75% from the previous season even as mills look to allocate more cane to sugar production to take advantage of higher prices. The data also includes fuel made from corn.

Source: Nasdaq

To read the original news piece, please visit: https://www.nasdaq.com/articles/brazil-sugar-production-meets-market-expectations-in-early-june

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