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Platts Pre-Report Survey of Analysts Results: UNICA Sugarcane Crush - Brazil - 2H December 2015

LONDON
and
SAO PAULO
, Jan. 11, 2016 /PRNewswire/ --

Platts Survey of Analysts

  • Cane crush: 10.02 million metric tons (mt)
  • Total recoverable sugar (ATR): 108.54 kilograms per metric ton (kg/mt)
  • Sugar production: 289.6 thousand mt
  • Total ethanol production: 461 million liters (ltr)
  • Hydrous ethanol production: 268.8 million ltr
  • Anhydrous ethanol production: 192.2 million ltr
  • Sugar mix: 28.23%
  • Ethanol mix: 71.77%

Sugarcane crush volumes in the key Center-South (CS) region of

Brazil
in the second half (2H) of December are expected to total 10.02 million mt, according to a Platts survey of analysts. Platts is a leading global provider of energy and commodities information and premier source of independent benchmark price references.

Analysts' expectations for the cane crush spanned 6.9 million-12.1 million mt. Brazilian sugarcane industry group UNICA usually releases its bi-weekly sugarcane harvest data a few working days after the reporting period ends.

A Platts poll of analysts shows a consensus forecast for total recoverable sugar (ATR) of 108.54 kg/mt, with a wider range of 107-112 kg/mt.

Analysts at Platts Kingsman, an agricultural analysis unit of Platts, forecast a slightly lower cane crush of 10.01 million mt and an ATR of 110.5 kg/mt, down 0.87 kg/mt from the first half of December.

Despite an estimated seven days of crush lost to rain over 2H December, if achieved, the 10.02 million mt of cane would be almost three times higher than crushed last year.

According to the Platts survey, the sugar mix in 2H December is expected to be 28.23%, down 5.1 percentage points on 1H December, but up 1.65 percentage points on the year.  Heavy rain last month has prompted dozens more mills than usual to continue crushing much later into the year in an attempt to maximize output.

By mid-December 182 mills were still in operation, according to UNICA. However, sources said that many mills that were still operating at the beginning of the 2H of December usually stop halfway, due to the end-of-year holidays.

Wet conditions remain a hindrance to those mills that remain open, and market sources estimate around 20-30 mills will likely continue to operate until the end of January. According to Platts Kingsman analyst Claudiu Covrig the result will be a higher amount of cana bisada to be carried over into the next season, and the shortest intercrop period in history. So-called "cana bisada" refers to outstanding cane left in the fields to be crushed early next season.

Covrig said that in the January to March period mills would likely be strongly focused on ethanol production, probably accounting for around 80% of the mix.

In terms of ethanol production in 2H December, the average of analysts' expectations pointed to total output of 461 million liters, which would be a drop of 330 million liters from 1H December. This would take cumulative ethanol production since the start of the season on April 1 to 27.04 billion liters, up 4.35% from a year earlier.

Hydrous ethanol production is expected to be 268.8 million liters, up 94% year from this time a year ago, taking cumulative production to 16.55 billion liters, up 10%.

Soaring demand following the government's gasoline tax increase and price rise has boosted production rates, particularly of hydrous, used as a standalone biofuel at the pumps (E100).

Despite surging production stocks to be used in the intercrop season are expected to be tight.

Platts Kingsman expects hydrous stocks in CS Brazil on April 1, 2016 of roughly 800 million liters and anhydrous of just less than 400 million liters, both less than the required for a month of consumption.

Anhydrous production is expected to reach 10.7 billion liters in 2015-16, down almost 1% on the year. Brazilian Gasoline C is a blend of gasoline A with 27% anhydrous ethanol.

 CS Brazil Cane Production Data -- 2H December, 2015 (as of Jan 1)

Category       

Unit       

Survey  

Platts Kingsman

UNICA (2014)  

Cane crush

(million mt)   

10.02

10.01

3.69

ATR

(kg/mt cane)

108.54

110.50

131.25

Sugar output   

(thousand mt)   

289.59

292.00

123.40

Ethanol total  

(million ltr)  

461.04

473.00

214.00

Hydrous output 

(million ltr)  

268.83

256.00

138.70

Anhydrous output

(million ltr)  

192.22

217.00

75.40

Sugar Mix

(%)

28.23

27.50

26.58

Ethanol Mix    

(%)

71.77

72.50

73.42

CS Brazil Cane Production Data -- 1H December, 2015 (as of Dec 15)

Category       

Unit       

Survey  

Platts Kingsman

UNICA  

Cane crush

(million mt)   

19.22

19.54

17.99

ATR

(kg/mt cane)

114.39

116.50

111.37

Sugar output   

(thousand mt)   

657.48

668.00

636.00

Ethanol total  

(million ltr)  

893.62

920.00

790.00

Hydrous output 

(million ltr)  

475.93

470.00

416.00

Anhydrous output

(million ltr)  

417.69

450.00

375.00

Sugar Mix

(%)

30.95

30.80

33.33

Ethanol Mix    

(%)

69.05

69.20

66.67






Sources: Platts Pre-Report Survey of Analysts Results--UNICA Sugarcane
Crush, Platts Kingsman, UNICA.  

 

Visit the Platts website for more information on sugar and biofuels.

Contact Platts Communications to arrange interviews with Platts Kingsman sugar and ethanol analysts:  Claudiu Covrig, Maria Nunez, Alessandra Rosete, and Beatriz Pupo; and Platt's sugar price assessments specialists: David Elward, Nicolle Monteiro de Castro and Darren Stetzel. If you would like to receive this on a regular basis, please select Agriculture at this alerts sign-up link.

Editor's Note: In its bi-monthly cane harvest update, UNICA publishes a range of sugarcane harvest production metrics for

Brazil's
Center-South region, also broken down into São Paulo and other states.

CONTACT
Global,

Americas
,
Asia
: Kathleen Tanzy, + 1 917 331 4607, kathleen.tanzy@platts.com

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals, metals and agriculture information and a premier source of benchmark prices for the physical and futures markets.  Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency.  Customers in more than 150 countries benefit from Platts' coverage of the biofuels, carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, shipping and sugar markets.  A division of McGraw Hill Financial (NYSE: MHFI), Platts is based in

London
with more than 1000 employees in more than 15 offices worldwide. Additional information is available at http://www.platts.com.

About McGraw Hill Financial: McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include Standard & Poor's Ratings Services, S&P Capital IQ and SNL, S&P Dow Jones Indices, Platts, CRISIL and J.D. Power. The Company has approximately 20,000 employees in 31 countries. Additional information is available at www.mhfi.com.

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SOURCE Platts

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