CONAB PROVIDES STRONG INCREASE IN SUGAR PRODUCTION

In line with private consultancies and entities in the segment, Companhia Nacional de Abastecimento (Conab) also predicts that the country’s mills will favor sugar production over ethanol in this 2020/21 harvest. In its first report on the season that started in April, released yesterday, the state-owned company estimated sugar production at 35.3 million tons, 18.5% more than in 2019/20, and ethanol at 29.3 billion. liters, down 13.9%. The movement reflects the double crisis in the domestic biofuel market, which faces a fall in demand and prices – in this case under the influence of the oil slump – and the best moment for sugar exports, mainly due to the favorable exchange rate. From sugarcane ethanol production, 9.2 billion liters should be anhydrous (mixed with gasoline), 8.8% less than in the previous cycle, and 20.1 billion liters of hydrate (used directly in vehicle tanks) , a 16% reduction in the same comparison. Conab also released projections for the production of ethanol made from corn. In this case, the agency predicts a significant increase of 61.1%, to 2.7 billion liters – 713.4 million anhydrous (76% high) and 2 billion hydrous (56.4% high). Thus, the total production of ethanol in the country in 2020/21 is expected to reach 32 billion liters, a reduction of 10.3% compared to 2019/20. In total, Conab estimated Brazilian sugarcane production at 630.7 million tons in 2020/21, a volume that represents a 1.9% reduction compared to 2019/20.

Source: Valor / Portos e Navios