Sugar production in central-south regions of Brazil rose 8.9% year-on-year in the first half of July to 3.24 million tonnes, data from industry group UNICA showed on Tuesday.
48.37 million tonnes of cane was crushed in the period, up 4.2% from a year earlier. Ethanol production totalled 2.26 billion litres, up 1.4% UNICA stated.
Mills have sought to allocate more cane to sugar production this season to take advantage of higher prices, with the so-called “production mix” favouring sugar from 50.01% to 49.99% in the fortnight, according to UNICA.
This season’s production has benefited from higher agricultural yields in Brazil’s main producing areas, with the industry group saying that data showed yields in June were up 19.5% on a yearly basis.
“Despite the excellent result, it should be noted there is a high participation of younger sugarcane fields in this indicator,” UNICA pondered. “As their participation fades, yield gains are likely to be more moderate in coming months.
Source: Nasdaq