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- Brazil are producing more sugar than expected, despite trying to push as much production towards ethanol.
- Dry weather at the end of the crop has meant that the amount of sugar content has surprised to the upside.
- Ethanol production capacity is already maximised so mills cannot increase ethanol production despite more feedstock availability.
- Producers are therefore forced to allocate the feedstock to sugar production, which needs to be exported.
CS Brazil ATR (Sugar Content) by Fortnight
- The sugar content of Brazilian sugar cane normally peaks in the September, when the dry period of the region is at its end.
- From October onwards, weather becomes progressively wetter and sucrose concentration falls.
- However, this season has been abnormally dry.
- As a result, the sugar content of cane has been stronger than normal in October and so far in November.
- Therefore, even though cane mills are once again maximising ethanol production, sugar production this year could reach 26.7m tonnes – 200kmt above y-o-y.
