Brazil sugar production falls in July, cane yields drop 10%
In Brazil’s center-south region, sugar production fell 2.16% to 3.61 million metric tons in late July due to drier conditions impacting yields. Sugarcane crushing dropped 3.35% to 51.31 million tons, while ethanol output increased by 3.47% to 2.55 billion liters. The sugar mix was 50.28%, lower than both estimates and last year. Soil moisture in key areas is at a seven-year low, reflecting poor crop conditions.
SAO PAULO, Aug 13 (Reuters) -Sugar production in Brazil’s center-south region totaled 3.61 million metric tons in the second half of July, a 2.16% drop on a yearly basis, while agricultural yields for sugarcane declined as the crop struggles in drier weather.
Industry group Unica said in a report on Tuesday that sugarcane crushing in the period totaled 51.31 million tons, down 3.35% year-on-year, while total ethanol output reached 2.55 billion liters, up 3.47%.
Production data from one of the world’s largest sugar producers was in line or slightly above market estimates. A survey by S&P Global Commodity Insights indicated sugar production at 3.6 million tons and cane crush at 50.8 million tons. Sugar prices SBc1 pared gains after the report.
Unica said that an assessment of sugarcane productivity in July showed a 10% fall in the volume of cane per hectare from last year’s 87.5 tons per hectare.
“That data is an indication of the (bad) condition of crops yet to be harvested,” said Unica’s director Luciano Rodrigues.
Soil moisture in the main Ribeirao Preto producing area is currently at the lowest for the last seven years, due to below-average precipitation.
The sugar mix, or the amount of cane allocated to sugar production, was again below analysts’ estimates at 50.28%, which is also below the sugar mix seen a year ago.
Source Link : https://www.xm.com/research/markets/allNews/reuters/brazil-sugar-production-falls-in-july-cane-yields-drop-10-53904797
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