December 13, 2012

Brazilian Sugarcane Production Approaches 600 Million Tons

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

In their third evaluation of the 2012/13 sugarcane crop released on December 12th, Conab estimated that Brazil's sugarcane production would be 595 million tons or up 6.2% compared to the 560 million tons harvested in 2011/12. The sugarcane harvest is nearly complete in southern Brazil, but it will continue a while longer in northeastern Brazil. The harvested sugarcane acreage increased to 8.52 million hectares in 2012/13 compared to the 8.35 million hectares harvested in 2011/12. The sugarcane harvest in Brazil usually starts in March or April and concludes in November or December.

These production numbers could still increase a little more as the sugarcane in n northeastern Brazil is harvested. The higher production in 2012/13 is being credited to increased acreage and improved weather.

Brazil's sugar production is expected to increase 4.7% in 2012/13 to 35.9 million tons, up from the 37.6 million tons produced in 2011/12. In contrast, the ethanol production in Brazil is expected to decline 5.2% going from 24.9 billion liters in 2011/12 to 23.6 billion liters in 2012/13. The amount of anhydrous ethanol, which is used to blend with gasoline, is expected to decline 0.8% while hydrous ethanol sold as E100 to owners of flex fuel vehicles is expected to decline 8%.