Main Focus

  • Crushing rate decreased this fortnight, registering 39.5 mmt of cane
  • Probably in order to maximize the sugar mix, since the sugar content reached the highest value of the crop so far with 158.5 kg/tc.
  • As a result, 2.86 mmt of sugar were produced in the period at CS – 12% increase.

1H September 2022 Production Numbers

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Late End

  • 39 mmt of cane were processed in the first half of September.
  • The crushing rate had to be reduced in order to optimize the high concentration of sucrose recorded in the fortnight.

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  • The sugar content rose by more than 4kg/ton, reaching 158.5kg/ton.
    • Highest value recorded in this crop so far.
    • Dry weather contributed to the improvement in quality of the plant.
  • A high sugar content combined with a 48% sugar mix resulted in 2.9mm t of sugar produced in the fortnight.
  • So far cumulative production is at 24.6 mmt – behind 2021/22 by 2.3 mm t.
  • Contrary to previous years, the harvest should be extended to December to be able to produce the 33mmt estimated for 2022/23.

Corn Ethanol Growing

  • In the last year, with the largest number of mills operating, the production of corn ethanol in the country has grown significantly.
  • On average, in the last fortnights, around 190 million liters of ethanol were produced – an increase of 20% in relation to 21/22.

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  • In the accumulated, production has reached so far 1.90 billion liters – a volume of 66 thousand liters greater than the same period last crop.
  • Our expectation is that the consolidated for this harvest will reach 4.4 billion liters of ethanol derived from corn in the CS.

Weak Ethanol Demand

  • Even with the parity at the pump favoring ethanol, hydrous registered a retraction in demand in early September.
  • 648 million liters were sold in 1H September – down 11% from the last fortnight.
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  • One of the factors for this drop may be related to the purchasing strategy of the distributors:
    • They may have accelerated their purchases in late August to take advantage of low biofuel prices.

 Other opinions that you might like: 

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Catarina Junqueira

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