Brazil’s sugar output revised downward as dry weather persists – report

RIO DE JANEIRO, BRAZIL – Brazil’s 2021/22 Center-South sugar production was revised to 34.1 million tons from an April projection of 35.6 million tons, as persistent dry weather hurt cane development, food trader and supply chain services provider Czarnikow said on Tuesdaym June 28.

According to the report, Brazilian millers will be able to crush only 535 million tons of sugar cane this season, the smallest amount since 2012. Czarnikow’s previous estimate was for a crush of 558 million tons. Brazil’s CS processed 605 million tons in 2020/21.

Cane-based ethanol production is seen falling 12% from the previous season to 24.4 billion liters.

Czarnikow said Brazil’s CS rains between January and June are 43% below normal, which reduced agricultural yields on cane fields by 12% so far to 69.8 tons per hectare. “We must admit that the fall was larger than we expected,” said analyst Ana Zancaner in the report.

Czarnikow said the smaller production will lead Brazil to export less raw sugar. “The biggest impact is expected in Q122, as the reduction in the crop estimate leads mills to cancel their commitments towards the end of the cycle.”