• 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;

272 words / 2 minute reading time

Steady Increase 

undefined
  • 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 

undefined
  • 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;

undefined
  • 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;

undefined

Crop Summary Table

undefined

Ana Zancaner

Ana graduated from Insper University Sao Paulo in 2013, with a bachelor’s degree in business administration. She joined CZ as an intern in 2013 and is now our senior analyst in our Sao Paulo office. At CZ she is responsible mainly for analysis of the Brazilian sugar and ethanol sector but supporting other consulting requests as well.

More from this author