Sugar Cane Crushing in Brazil's Center-South Region Drops by 18% in Early March

Sugar cane crushing in Brazil's central-southern region experienced a notable decline of approximately 18% in the first half of March compared to the same period last year, according to a recent report from industry association Unica. Crushing volumes totaled just 1.83 million metric tons, reflecting challenging operational conditions early in the harvest season.

Alongside reduced cane crushing, sugar production also fell by about 19%, reaching only 52,000 tons. In contrast, ethanol production saw a significant increase of roughly 20%, amounting to 442 million liters. This boost in ethanol production indicates that producers may be strategically favoring biofuel production due to market conditions or supply-chain logistics.

Typically, Brazil's sugar harvest officially kicks off in April. However, 19 processing units began operations early in March, reflecting strategic decisions aimed at optimizing production cycles. By mid-month, a total of 37 units were operational, including 22 sugarcane processors, 10 ethanol plants using corn, and five flexible plants capable of processing both feedstocks.

An additional 19 units are anticipated to begin operations by the end of March, though Unica has cautioned that these timelines could shift depending on weather conditions and other operational factors. Industry experts emphasize that continued monitoring of climatic conditions will be crucial, as weather variability can significantly impact cane yields and production efficiency.

As Brazil continues to balance its production between sugar and ethanol, market participants will closely watch how these early-season trends evolve and their subsequent impacts on global sugar and ethanol markets.