UNICA revises Brazil sugarcane harvest predictions

September 15, 2009

BY Erin Krueger

Report posted Sept. 28, 2009, at 5:45 p.m. CST

UNICA, Brazil's sugarcane trade association, recently revised its predictions for the 2009-'10 sugarcane harvest and crush. According to information released by the association, persistent rain reduced ethanol and sugar production in south-central Brazil during the first half of September, affecting projected totals for this year's harvest.

Brazil experienced higher-than-average rainfall during the first half of September, resulting in the loss of 11 more days of crushing when compared to the same time last year. According to UNICA, it is expected that the loss will reach 45 days of crushing by the end of the month. Only 34 days of crushing were lost during the same period during the 2008-'09 harvest.

The total amount of sugarcane processed during the first half of September was 13.6 percent lower than the same period last year. In addition, the total recoverable sugar obtained per ton of cane was 11.3 percent lower than that of the same two-week period during the 2008-'09 harvest. According to UNICA, the combination of reduced volume of crushed cane and the drop in recoverable sugar led to a 22.88 percent reduction in production during the first half of September.

During the same time period, 43.59 percent of the harvested cane was used to produce sugar and 56.41 percent was used to produce ethanol. Brazil's total ethanol production for the first half of September was 1.32 billion liters (349 million gallons), representing a 26.84 percent drop from the same period last year. However, ethanol production since the beginning of this year's harvest is nearly equal to the amount produced during the same period last year.

According to UNICA, ethanol exports since April are down 27.3 percent compared to last year's volumes. The association said this decrease is due to reduced anhydrous ethanol exports, which are down sharply. This is primarily due to a decline in direct exports to the U.S.

UNICA's revised sugarcane crushing forecast for south-central Brazil is 529.5 million tons - 3.7 percent lower than the association's original projection, but 4.9 percent higher than last year's harvest.

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