Cumulative sugar production in Center-South Brazil between the start of the 2020-21 season on April 1 and July 1 totaled 13.30 million mt, a 48.77% surge on the year and a record high for the period, data from trade association UNICA showed July 9.
The amount of sugar produced in in the second half of June was 2.73 million mt, a 23.34% jump year on year because sugar's share in the crush was 47.42% compared with 37.06% in the year prior.
The fall in the Brazilian real against most world currencies during 2020 made sugar bound for export very attractive. April 1-July 1 sugar exports increased 67.22% year on year to 6.44 million mt, according to UNICA. Domestic sales of sugar in from April 1 to July 1 totaled 2.22 million mt, an increase of 7.13% on the year, it added.
H2 July sugar exports increased 70.13% year on year to 2.59 million mt, according to UNICA.
Mills in Center-South Brazil crushed 42.93 million mt of sugarcane in H2 June or 7.73% lower than a year earlier, data from trade association UNICA showed July 9.
Total recoverable sugar (ATR) in H2 June averaged 140.66 kg/mt, an increase of 4.46% year on year. The cumulative ATR for the 2020-21 season to July 1 was 131.06 kg/mt, an increase of 5.58%.
There were 258 sugarcane mills operational at the end of H2 June, compared with 255 a year earlier. An additional 5 mills are expected to come online during the first half of July.
Favorable weather, sugar production paying much better than ethanol and the weaker Brazilian real boosting overseas demand for exports will encourage maximum sugar production.
Ethanol production, sales
Ethanol production in CS Brazil was 1.96 billion liters in H2 June, compared with 2.36 billion a year earlier, UNICA said. Hydrous ethanol production accounted for 1.36 billion liters of the total, while anhydrous ethanol output was 596.30 billion liters, it added.
Cumulative 2020-21 ethanol production to July 1 totaled 10 billion liters or 6.6% less than a year earlier. The quantity of hydrous ethanol produced was 7.18 billion liters, 4.0% lower. The quantity of anhydrous ethanol produced was 2.82 billion liters, down 12.6%.
The reason behind the small drop in cumulative ethanol production when mills are maximizing sugar production was advances in milling technology and better quality cane.
Cumulative corn ethanol production since the start of the cane harvest was 506.93 million liters, UNICA said.
Ethanol sales by CS mills in 2020-21 from April 1 to July 1 totaled 6.37 billion liters or 22.71% lower year on year, with 5.88 billion liters going to the domestic market and 493.33 million liters for exports. The fall in demand was caused by the impact of the coronavirus pandemic on the Brazilian economy.
Ethanol sales by CS mills during the whole month of June totaled 2.40 billion liters or 11.43% lower from a year earlier, with 2.13 billion liters going to the domestic market and 267.05 million liters for exports. The exported quanity was 44.31% higher year on year due to the weaker Brazilian real versus most world currencies. The quantity of hydrous ethanol sold was 1.47 billion liters, down 19.64%. The quantity of anhydrous ethanol sold was 663.86 million liters, down 4.70%.
Sales of ethanol for non-fuel purposes totaled 118.25 million liters for the month of June, an increase of 40% on the year. The jump in non-fuel ethanol sales was driven by strong demand for hand sanitizer because of the coronavirus pandemic.
