- The 2019/20 season in NNE is 70% done;
- Mills remain focused on ethanol production, similar to last season;
- Total sugar production should be around 2.6mmt – small increase yoy;
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Steady Increase
- Crush pace in NNE has remained steady so far in the season, with 36.5mmt of cane processed until the 1H of December;
- This is an increase of 6% when compared to the previous crop;
- With a higher cane availability this season, crush should remain strong for another month;
- Overall, estimates point to a season with over 50mmt of cane crushed – a figure not seen since 2014/15;
Focus on Ethanol
- Cumulative sugar mix until the 1H of December stands at 38.6% – slightly lower than last season;
- Producers in the region continue to focus on ethanol production, as the biofuel remains the highest source of revenue;
- Fuel demand in NNE has seen a recovery this past year – like the CS region;
- However, while in the CS gasohol demand is down by 2%, the fossil fuel saw a growth of 3% in 2019 in the region;
- Since in Brazil an anhydrous ethanol mix of 27% is required in gasoline, the demand for this type of ethanol has increased as well;
- In part, the demand has been supplied by an increase in production in the region;
- While the other is supported via imports and transfers from the CS region;
Crop Summary Table