Corn to be Brazil’s top ethanol feedstock as sugar output drops after intense rains

South African Corn prices

Brazil is currently experiencing a shortage on cane, touching its weakest level in more than ten years on Wednesday. This movement has left corn stocks be the country’s top export.

Marketing management company Unica suggested on the same day that this might be the weakest level in a decade, considering the idea that lower cane stocks already took place at the beginning of this year. They added that the processing amounted more than 1.18 million tons by the first 15 days on the previous year’s first quarter.

The processors of cane in the Centre South of Brazil already lost as much as 166,420 tons in this year’s Q1 and has touched the short of about 50 million tons in mid-July, considering that the nation produces almost 90 percent of Brazil’s ethanol production and sugar.

However, it is already usual for a sharp decline to take place at this time of the year as the volumes of reducing crush slumped on its lowest level. The blackout of mills in the Centre South is a common occurrence due to rainy season.

Unica also mentioned the significant damages intense rainfall makes. This frequent incident of hinders farmers from harvesting cane, resulting in a sharp decline in volumes. A technical director from the organization Antonio De Padua Rodrigues said the milling activities between January and February will only be marginal because there are only small numbers of crushers operating.

Rodrigues added that they will depend on the future weather conditions this coming month as mills will restart this March before April 1’s official start of processing.


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