Bloomberg News

Sugar Outlook for Brazil Region Cut on Rain, Copersucar Says

July 18, 2012

Sugar output in Brazil’s center south, the world’s largest producing region, will be lower than forecast as rain reduces the crop’s sugar content, said Copersucar SA, the world’s second-largest sugar trader.

The region’s mills will produce 30.5 million tons of sugar this crop year, less than a June 28 forecast of 31 million tons, Chief Executive Officer Paulo Roberto de Souza told reporters today in Sao Paulo. The crop year started April 1.

“Excessive rainfall is delaying harvest and diluting sugar content of the crop,” Souza said. “About 42 percent of our mills have halted crushing due to rain.” Precipitation hinders harvesting as machines can’t work in muddy fields.

Brazil is the world’s biggest producer and exporter of the sweetener. Latin America’s largest economy accounts for about half of global shipments. The center south region, producer of 90 percent of the country’s sugar and ethanol, processed 31.3 million tons of sugar in the last crop year.

The forecast for the region’s ethanol output was raised to 21.5 billion liters (5.67 billion gallons), from 21.4 billion liters, as poor sugar content prompts mills to convert more cane into biofuel, Souza said. He reiterated the region’s cane output forecast of 505 million tons.

Minneapolis-based Cargill Inc., America’s largest closely held company, is the world’s largest sugar-trading company.

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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