by Roberto Samora
SAO PAULO (Reuters) – The center-south of Brazil, the world’s largest sugarcane producing region, did not record any crushing of the raw material for sugar and ethanol in the second half of December, the Sugarcane Industry Association said on Wednesday. (Unica), evidencing the effects of the severe crop failure caused by drought and frosts throughout 2021.
“Despite the existence of units in operation with capacity to process sugarcane, no grinding of raw material was recorded in the second half of December,” Unica said in a note.
As a result, the amount of sugarcane processed in the 2021/2022 harvest (April/March) remained at 521.67 million tons, down 12.67% from the same period in the previous cycle.
The association also did not register sugar production in the main global hub, with the production of the sweetener until the end of last year being in the accumulated of the harvest at 32 million tons, a decrease of 16.14%.
The last time Unica did not record sugar production in a fortnight was in the second part of February of the 2019/20 harvest, according to data from the association.
In the second half of December, ethanol production was also residual, totaling 157 million liters (anhydrous and hydrated).
In the last full month of the year, the production of anhydrous ethanol was 174 million liters (-4.29%), of which 82.7 million were made from corn processing and another part from the reprocessing of hydrated ethanol. .
In the year, production of anhydrous ethanol totaled 10.8 billion liters (+12.75%), with the sector meeting a greater demand for blending into gasoline, which is more competitive than hydrous ethanol.
The production of hydrous ethanol in the accumulated harvest up to December totaled 15.75 billion liters, down 20% compared to the previous cycle.
Unica also reported that, from April to December 2021, units producing ethanol from corn produced 2.57 billion liters of liters, which represents an increase of 38.12%.
Considering the effects of the crop failure, the entity assesses that there may be some sugarcane crushing in March, when some mills are already starting work with a view to the new season.
“But the amount to be milled (in March) should be much lower than that observed in previous years,” said Unica’s technical director, Antonio de Padua Rodrigues, signaling a longer off-season.
SALES
In the last month of 2021, production units in the center-South sold a total of 2.15 billion liters of ethanol, a decrease of 22.7% compared to the same period of the 2020/2021 harvest.
Of the total sold in the period, 155.38 million liters were destined for the foreign market and 1.99 billion liters were sold domestically.
In the domestic market, sales of hydrous ethanol maintained the downward trend and reached 1.12 billion liters, registering a drop of 36.31%.
The amount of anhydrous ethanol sold in December 2021 increased by 2.32% compared to the same period in the previous year, to 877.72 million liters, according to Unica data.
The technical director said that, “despite the retraction in the supply of sugarcane, the current levels of ethanol stocks offer comfort for the full supply of the market in the coming months of the off-season”.
He added that hydrous ethanol outputs from producers for the month of December were lower than expected.
“The trajectory of the most intense retraction in biofuel consumption since September reflects the signs of economic slowdown”, he pointed out.
From the beginning of the harvest until the second half of December, the accumulated volume of ethanol sold by companies in the center-south had a retraction of 9.32%, with around 21.14 billion liters sold.
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