Late-October sugar output in Brazil meets expectations

SAO PAULO: Brazilian mills in the main center-south region produced 2.05 million tonnes of sugar in the second half of October, slightly below the previous fortnight's volume but in line with market expectations.

Sugar companies in the region crushed 31.75 million tonnes of cane in late October, compared with 32 million tonnes early in the month, according to figures that cane industry group Unica released on Wednesday. Ethanol output fell to 1.3 billion liters from 1.4 billion liters.

Market estimates ranged from 30 million tonnes to 31.7 million tonnes for crushing and from 1.9 million tonnes to 2.08 million tonnes for sugar production for late October, as the crop advances to its final stages.

Unica confirmed a loss in agricultural yields in the region due to excessive dryness and frosts earlier in the year.

The group said an analysis run by the Cane Technology Center found that productivity in October was 15 percent below year-earlier levels.

According to the report, 55 mills had already finished crushing for the season by the end of October, compared with only 18 a year earlier, when excessive rains delayed processing.

Unica said 40 more mills finished harvesting in the first half of November. Most analysts see an early December end to harvesting in the center-south, which will lead to a longer-than-normal intercrop period.