• Cane harvested from now on is expected to show lower yields.
• Crop could end sooner than expected.
• Concerns for 21/22 are also on the table.

Summary Table 2H September 

Record Crush Levels 

• The dry weather of the lasts 6 months has favoured the operationalization of the sugarcane harvest.
• Until the end of September, mills were able to achieve a record crush of 500mmt for the period – and 5.3% ahead yoy
• Additionally, the amount of sugar content in the cane in a max sugar scenario has contributed to a cumulative sugar production of 32mmt – again, another record.

CS Cumulative Sugar Production – Until September CS sugar output has reached 32mmt

The Dry Spell Continues 

• Until September, cumulative rains in CS Brazil were 40% below historical average.

Monthly Rains in CS Brazil – This has been a significant dry season

• Although, dry weather is good for the quality of the cane – allowing a higher sugar concentration – it can hinder development.

• With such high temperature and lack of rains, it is expected a decrease in the ag. yield for the cane harvest from now onwards;
• Furthermore,the insufficiency of rains in recent months delays and compromises cane development for the 21/22
  season.
• This sugarcane field below was harvest in June:
• We can see some parts of the field that have not even grown;
• And the parts of the field that did grown should be bigger by now in normal weather conditions.

• In summary:
• The 20/21 crop could end earlier than expected,
• Plant development delay can affect yields and the harvest calendar for next season.

Ethanol Market

• Hydrous sales by the mills registered,1.73 bi litres in September, 13% decrease yoy.
• The retraction observed in September was below the values registered until now
• This indicates a slowly recovery of consumption of the biofuels.

CS Monthly Hydrous Domestic Sales – slow recovery