Brazil is expected to produce around 2 million tonnes more sugar and import a high ethanol volume next year as mills tend to allocate more cane to produce the sweetener, consultancy Datagro said on Monday. The 2017-18 center-south cane crop should not change much from what is seen for the current season despite the favourable market condition, as an ageing cane field and irregular weather cuts next year's production potential, Datagro's chief analyst Plinio Nastari said.
Brazil is expected to process a cane crop between 580 million and 610 million tonnes next year, compared to 597 million tonnes this current crop. But sugar production will increase. It is seen between 36.1 million and 36.4 million tonnes versus 34.1 million tonnes this season, as mills expand their capacity to produce the sweetener by 2 million tonnes, Nastari added.
"Cane fields renovation remains below what would be desired. We saw that again in the current crop," said Nastari. Datagro expects mills to increase the amount of cane they allocate for sugar production, as was seen this year. It sees mills channelling from 47.1 percent to 49.1 percent of their crush to sugar next year compared to 46.3 percent so far in the current crop up to the second half of September. Ethanol production in 2017-18 is projected between 23.07 billion and 25.26 billion liters, compared to 26 billion liters this year.