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Analyst Insights Analyst Insights CS Brazil – 2020/21 Starts

April 29, 2020

1 min read

CS Brazil – 2020/21 Starts

  • Strong start of the new season in CS, with 22mmt of cane crushed.
  • As expected, mills are maximizing sugar output.
  • Sugar produced in the 1H totalled 0.95mmt – the highest volume since 2016/17.

Summary Table 1H April

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Strong Start

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  • Crush totalled 22mmt in the 1H of April – 61% higher yoy.
  • This is the strongest start of the season since 2016/17.
  • Mills in operation totalled 172 vs.157 last season.
  • While UNICA mentions that around 20 mills have postponed the start of the season due to uncertainties, it is not the standard of the CS region.
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  • Producers are taking extra precautions in order to protect its employees and make sure that operations carry out normally.
  • So far, all mills are crushing without problems.
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  • As for product output, as expected mills are maximizing sugar production.
  • Sugar mix registered in 1H of April was 39.7% – the highest since 2017/18 – resulting in a sugar production of 0.95mmt.

Ethanol Market

  • As expected, hydrous sales fell during the 1H of April.
  • The volume sold by mills totalled 560mi litres.

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  • Fall in sales reflects the coronavirus lockdown measures, and not a fall of hydrous competitiveness of the biofuel.
  • Fuel prices have fallen significantly at the gas stations, and hydrous parity reached 65% last week.

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Ana Zancaner

Ana graduated from Insper University Sao Paulo in 2013, with a bachelor’s degree in business administration. She joined Czarnikow as an intern in 2013 and is now our senior analyst in our Sao Paulo office. At Czarnikow she is responsible mainly for analysis of the Brazilian sugar and ethanol sector but supporting other consulting requests as well.

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