Bloomberg News

Brazil Area’s Sugar Cane Crop Seen at Record by Alta Mogiana

January 31, 2013

The sugar-cane crop in Brazil’s center south, the main growing region of the world’s biggest producer, will rise to a record in the season that starts there in April, according to Usina Alta Mogiana S/A.

Sugar cane processing will be 566 million to 580 million metric tons in 2013-14, above the previous record in 2010-11, the miller, based in Sao Joaquim da Barra in the state of Sao Paulo, said in a report e-mailed today. The crop will increase from 531.9 million tons, according to data from industry group Unica.

“Processing all this cane will be a great challenge, especially in the month of April, when we estimate at least 50 million tons of cane will need to be crushed in order to avoid leftover cane for next year,” the miller said.

Brazil’s center south processed 14.2 million tons of sugar in April last year, Unica data showed. Crushing 50 million tons will depend on the area having dry weather, Marcos Mine, a risk manager at Alta Mogiana, said by phone today. He added that about 49 million tons were processed in that month in 2010-11.

Sugar output will rise to 34.6 million to 35.3 million tons, according to the report. That compares with 34.1 million tons this season, Unica data showed.

Alta Mogiana’s estimates already take into this week’s increase in gasoline prices in Brazil and the government’s announcement of a raise in the amount of ethanol to be blended into gasoline to 25 percent in May from 20 percent now, Mine said. Raw sugar for March delivery was up 0.6 percent to 18.82 cents a pound by 1:09 p.m. on ICE Futures in New York.

To contact the reporter on this story: Isis Almeida in London at ialmeida3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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