Oct 29, 2010
23 Sugar/ethanol Mills in Brazil are Already Closed for the Season
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The amount of sugarcane processed in southern Brazil continued its decline during the first half of October. This is a continuation of a decline that stated several months ago when the extended dry season resulted in reduced sugarcane tonnage. The amount of sugarcane processed during the first half of October was 4% less than the last fifteen days of September and 30% less than the first fifteen days of September.
According to the Union of Sugarcane Industries (Unica), the main reason for the continued decline in the amount of sugarcane being processed is the fact that 23 sugar/ethanol mills in southeastern Brazil had already closed for the season by October 15th due to a lack of sugarcane. Normally, mills don't close down until later in November or December. Last year at this time, only two mills had closed for the season. These closed mills won't start processing again until March or April when the harvest resumes.
Since the start of the sugarcane harvest in April until the middle of October, 28.6 million tons of sugar and 21.56 billion liters of ethanol have been produced in Brazil. Of all the sugarcane processed thus far this year, 55% has been used to produce ethanol and 45% has been used to produce sugar.