Brazilian sugar and ethanol production increased in new season – report

Band Roberto Samora and Marcelo Teixeira

SAO PAULO/NEW YORK, April 18 (Reuters)Brazil’s south-central (CS) region is expected to increase sugar and ethanol production in the new season that started in April as fields partially recovered from the worst drought in 90 years, according to a consulting firm WORK Economia said on Monday.

It projected the CS sugarcane harvest in 2022/23 at 558 million tonnes, 6.7% above 2021/22, while sugar production was estimated at 33.5 million tonnes from 32 .1 million tons last year. Total ethanol production, including fuel produced from both sugar cane and corn, was estimated at 30.2 billion liters compared to 27.5 billion liters in 2021/22.

JOB chief analyst Julio Maria Borges said weather conditions are currently close to normal in the region and if conditions remain adequate from now on, Brazil should have an even better harvest this year. next.

“The factories take good care of the fields. The higher production also dilutes their costs, so that’s a positive outlook for them,” Borges said.

The consultancy expects mills to spend slightly less cane on sugar production this season – at 44% compared to 45% in 2021/22 – and more on ethanol, as the fuel currently offers better financial returns following the increase in energy prices.

Nearly 14% of total ethanol production forecast for the season will come from corn, a record, as more ethanol plants come on stream in Brazil’s main grain belt in the central-western region.

Brazil’s CS sugar exports in 2022/23 are estimated at 24.5 million tonnes compared to 24.6 million tonnes in 2021/22, the consultancy said. Factories reduced their sugar stocks after last season’s poor harvest, Borges said, so they would not be able to increase exports despite this year’s better harvest.

(Reporting by Roberto Samora and Marcelo Teixeira; Editing by Aurora Ellis)

(([email protected]; +1 332 220 8062; Reuters messaging: [email protected]https://twitter.com/tx_marcelo))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Rachel J. Bradford