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Brazil mills keep focus on ethanol as sales surge


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By Marcelo Teixeira

SAO PAULO, Nov 27 (Reuters) - Brazilian mills continued to give priority to ethanol production over sugar in the first half of November as sales of hydrous ethanol in Brazil, the type used by flex fuel cars, surged 36 percent in the period.

Brazil's center-south, the world's largest sugar producing region, allocated 57.45 percent of cane early in November to ethanol production, with sugar production accounting for the remaining 42.55 percent, cane industry group Unica said on Monday.

Gasoline prices have increased more than 20 percent since July. Brazil's oil giant, Petrobras, raised prices following the international market, widening the gap with ethanol.

"Hydrous ethanol remains competitive (against gasoline) in the states of São Paulo, Minas Gerais and Mato Grosso, which account for half of the light vehicles fleet in Brazil," said Unica's director, Antonio de Padua Rodrigues.

Center-south mills produced 1.25 million tonnes of sugar in the first half of November, compared with 1.88 million tonnes in the previous two-week period. They crushed 23.34 million tonnes of cane in the period versus 30.02 million tonnes in the second half of the previous month (see table below).

Ethanol production early in November was 1.06 billion liters versus 1.57 billion liters in the previous two-week period, as the crop enters its final stage.

See below detailed figures from Unica's crop report for the first half of November (cane and sugar in million tonnes, ethanol in billion liters, total recoverable sugar-TRS in kg per tonne):

BRAZIL'S CENTER-SOUTH - 1st HALF OF NOV (ANNUAL COMPARISON)

2016/17

2017/18

PCT CHANGE

CANE CRUSH

21.77

23.34

7.24

SUGAR OUTPUT

1.36

1.25

-8.16

ETHANOL OUTPUT

0.92

1.06

15.29

TRS (kg/T)

137.44

132.64

-3.49

CANE TO SUGAR

47.95 pct

42.55 pct

CANE TO ETHANOL

52.05 pct

57.45 pct

BRAZIL'S CENTER-SOUTH CUMULATIVE DATA - 2016/17 VS 2017/18

2016/17

2017/18

PCT CHANGE

CANE CRUSH

562.02

552.94

-1.61

SUGAR OUTPUT

33.56

34.35

2.36

ETHANOL OUTPUT

23.61

23.66

0.20

TRS (kg/T)

134.13

137.58

2.57

CANE TO SUGAR

46.73 pct

47.40 pct

CANE TO ETHANOL

53.27 pct

52.60 pct

Source: Cane Industry Group Unica




This article appears in: Politics , Stocks


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