Sugar production in Brazil’s key center-south region declined by 0.8% in the second half of July compared to the same period last year, reaching 3.61 million metric tons, the industry group UNICA reported on Friday.
Sugarcane crushing during the period totaled 50.22 million tons, marking a 2.66% year-over-year decrease, according to a statement from UNICA.
The proportion of sugarcane directed toward sugar production, rather than ethanol, rose to 54.1% over the two-week span, UNICA data showed.
(Source: UNICA)
UNICA director Luciano Rodrigues said that the shift in allocation comes as the level of recoverable sugars in cane has plummeted, reported Reuters.
The (total recoverable sugars) level for the 2025-2026 harvest is the lowest observed in 10 years.
A U.S.-based sugar broker told Reuters that mills may be increasing their focus on sugar output to fulfill existing export commitments, despite the lower sugar content in the cane.
“I think the mills have (sugar) export contracts to honor and are scrambling with the drop in the ATR (sugar content in cane),” the broker said.
