Bloomberg News

Brazil Main Sugar Region to Miss Output Forecast: Raizen

July 06, 2012

Sugar production in Brazil’s center south, the world’s largest producing region, will be lower than previously estimated after rain eroded the cane’s sugar levels, according to a venture between Cosan SA Industria & Comercio (CSAN3) and Royal Dutch Shell Plc. (RDSA)

“Rainfall in May and early June will result in more cane, but less sugar,” Pedro Mizutani, head of sugar and ethanol at the venture known as Raizen, said in a telephone interview yesterday. “Sugar content of the cane is quite low.”

Sugar output in the center south region is estimated at 31.5 million metric tons in the crop year that started April 1, Mizutani said from Sao Paulo. That compares with a 33.1 million- ton forecast made April 12 by industry group Unica, which represents producers including Raizen.

Brazil is the world’s largest producer and exporter of sugar. Latin America’s largest economy accounts for about half of global shipments of the sweetener.

The sugar cane harvest in the center south will probably be extended until December, after rain slowed picking in May and early June as harvesters can’t work in muddy fields, Mizutani said. The harvest typically ends in November.

Ethanol output is forecast at 22.5 billion liters (5.9 billion gallons), more than the 21.5 billion liters expected by Unica, Mizutani said. Sugar-cane output is estimated at 520 million tons, he said. That’s up from as much as 505 million tons for this season, Unica Chairman Pedro Parente said June 14.

Raw sugar for October delivery rose 0.7 percent to 22.08 cents a pound in ICE Futures U.S. in New York.

To contact the reporter on this story: Lucia Kassai in Sao Paulo at

To contact the editor responsible for this story: James Attwood at

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