• Brazil’s sugar output is at 26m tonnes. 
• Their hydrous output is also at a record high due to the max cane allocation going into ethanol. 
• More mills will be closing over the coming weeks. 

Closing Early… 

• This season mills are closing earlier than usual. 
• During the 1H of November, only 56% of CS mills where in operation compared to 70% last season. 
• This is the lowest percentage seen over the past seven crops.
• It is not due to cane availability, which is expected to end around 3% higher year on year, but due to excellent time efficiency.

• According to UNICA, another 74 mills should end the season in 2H November and only 71 mills should still be operating in December. 

…but higher output 

• Record hydrous production has seen cumulative volume reach 21.5b litres until 1H November. 
• Due to excellent demand, prices have been on the rise and reached BRL1.9/litre (14.3c/lb) last week. 
• Over the next fortnights, the mills that are still operating will continue to focus on ethanol output. 
• However, this will not prevent the final figure of the season for sugar production from surpassing last year’s. 

Hydrous Sales 

• Hydrous sales at 1H November reached 949m litres. 
• Consumers continue to respond favourably to hydrous due to price parity. 
• Price parity has increased to 66%, but this has not affected consumer preference. 

Corn Ethanol Production   

• Total corn ethanol production was up 102% YoY at 810m litres in 1H November.
• The majority of output remains focussed on hydrous, with 557m litres of production until 1H November.
• At the current pace, corn output could surpass 1.4b litres this season.