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Brazil sugar output down sharply in late September on heavy rains
CONTRIBUTOR
Gabriel Araujo Reuters

PUBLISHED
OCT 11, 2022 10:42AM EDT

CREDIT: REUTERS/MARCELO TEIXEIRA

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SAO PAULO, Oct 11 (Reuters) - Sugar output in Brazil's main center-south cane belt fell sharply in the second half of September, data provided by industry group Unica showed on Tuesday, as heavy rainfall affected crushing.

Production of the sweetener reached 1.7 million tonnes in late September, a 27.3% drop from a year earlier, missing market estimates as analysts polled by S&P Global Commodity Insights had expected it to total 1.96 million tonnes.

"Rainfall was quite intense specially in the states of Sao Paulo, Parana, Mato Grosso do Sul and in southern Minas Gerais, hampering industrial activities and the progress of the harvest," Unica said in a report.

On the other hand, it added, agricultural yields went up last month.


According to Unica, the heavy rains led sugarcane crushing in Brazil's center-south to fall 29.7% in the second half of September, totaling 25.29 million tonnes - well below the 29 million tonnes forecast by analysts.

Ethanol production in the period was down 28.6% to 1.42 billion liters, also including fuel made from corn. Analysts had projected output of sugarcane-based ethanol to reach 1.63 billion liters.

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