In the second half of August, sugar production in Brazil’s center-south reached 3.26 million metric tonnes, marking a 6 per cent decrease compared to the same period last year. This decline occurred because mills diverted more sugarcane away from sugar production than anticipated, according to industry group UNICA.
During this period, sugarcane crushing dropped by 3.25% to 45.07 million tonnes. While sugar output met market expectations, crushing slightly exceeded the 44.99 million tonnes forecast by analysts from S&P Global Commodity Insights.
The proportion of sugarcane allocated for sugar production, known as the sugar mix, was lower than expected at 48.8%. The remainder of the cane was used for ethanol production, which increased by 6% to 2.45 billion liters.
UNICA reported that fires in Sao Paulo state affected at least 231,830 hectares (572,864 acres) of sugarcane fields, including 132,040 hectares that had not yet been harvested. This damage is expected to make sugar production more challenging and exacerbate declines in agricultural yields, according to the group.
