Brazil’s sugar production rises to record at the end of May, ethanol production advances 9%

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Brazil's sugar production rises to record at the end of May, ethanol production advances 9%

By Nayara Figueiredo and Marcelo Teixeira

SAO PAULO / NEW YORK, Jun 10 (Reuters) – The south-central region of Brazil produced a record amount of sugar in the second half of May and almost 10% more ethanol than in the same period of the previous year, since The dry weather allowed for a rapid pace of cane processing, industry group Unica said on Thursday.

The region’s mills produced 2.62 million tons of sugar in the second half of May, 2.6% more than a year ago and above market expectations. Ethanol production increased 9.1% to 1.98 billion liters, Unica said.

The sugar and ethanol plants crushed 43.22 million tons of cane in the second half of May, 1.9% more than a year ago.

Traders and analysts were expecting sugar production of 2.59 million tonnes and cane crushing of 43.04, according to a survey by energy and raw materials information provider S&P Global Platts.

Unica said sugar production at the end of May was the highest on record in the period.

Raw sugar prices in the ICE market, which rose slightly at the beginning of the session, reversed trend and fell after the release of data from Unica.

“That sugar rally can be attributed primarily to the strong dry weather in the South Central region, which has resulted in an increase in recoverable sugar,” said Nicolle Monteiro de Castro, senior pricing specialist at S&P Global Platts.

Sugar content in cane rose 2.7% in the period, Unica said, although agricultural cane yields in May fell about 9%.

Article source: https://es-us.finanzas.yahoo.com/

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