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  • Cane crush advances in the first half of July, registering 46 million tons of cane.
  • Sugar content also improved significantly.
  • However, sugar production remains lower than the previous crop by 2.66 million ton

1H July 2022 Production Numbers

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Within Expectation

  • 46.35 mmt of sugarcane were processed in 1H July – the first fortnight in which the crushing rate reached the same level as in the previous crop.
  • From the last fortnight to now, it has been a growth of 4 mmt in the volume of cane crushed.

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  • But the cumulative crushing volume is still lower than in 2021/22 with 25 mmt less cane.
  • With the increase in the crushing pace and the hope of a stronger agricultural productivity (TCH) in the next fortnights, it is expected that this difference to the previous crop could end at the end of October.
  • As a result, for now we project that 545.5 mmt of cane could be crushed in the region this crop.

Sugar Content at better levels

  • The low volume of rainfall in recent months helped to strengthen the sugar content (ATR) this fortnight.

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  • The sugarcane quality was better than expected with the ATR at 143.19 atr/tc.
    • Growth of 6 atr/tc since the end of June.
  • It is expected amid the dry period that the ATR will get even stronger in the coming days.

Sugar mix rising

  • Despite the fact that this crop started more alcohol oriented, today the production mix of the mills in general is more sugar oriented.
  • In this fortnight, the sugar mix reached 47.1% – a level similar to the same period last year, which was considered a max sugar year.
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  • With a stronger sugar mix, the volume of sugar produced in the fortnight reached 2.98 mmt
  • As a result, CS has already produced 12.66 million tons of sugar since the beginning of the harvest – it still 17.4% lower than in 2021/22.
  • Our expectation for now is that sugar production could reach 32 million tons this crop.

Recovery in Ethanol sales

  • Hydrous sales grew in the first fortnight of July:
    • 735 million liters of ethanol were sold – 0.8% more than in 1H July 2021
  • This move was expected given that the parity at the pumps was below 70%.
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  • Today, however, the story is different with parity at the pumps at 70.1% favoring gasoline consumption

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Catarina Junqueira

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