CS Brazil – Production Update

280 words / 1.5 min reading time

  • Production figures for the 1H of Mar where published today;
  • Although they officially count as 2019/20, the mills in operation are actually starting the 2020/21 season;
  • 32 mills in operations and no disruptions were reported by millers due to coronavirus, therefore schedule remains on track for the moment

1H of March Data

  • Earlier today, UNICA disclosed CS production data of 1H of March.
  • Crush was slightly higher than initial estimates due to drier weather in the period, with almost 3mmt processed
  • In the 1H of March, CS registered 32 mills in operation – slightly higher than last year.
  • For the next fortnight, estimates point to 68 mills in operation.
  • According to UNICA, 12 mills delayed the start and will begin the season only in 1H April – not due to coronavirus.
  • No disruptions were reported by millers due to coronavirus, and schedule remains on track for the moment.
  • Mills are taking all the recommended precautions for the safety of its employees.
  • Furthermore, mills fall under the category of essential services and therefore are not subjected to quarantine measures imposed in several regions.
  • We reckon that there is the risk of unions asking for paralysation, but judges have been overruling these requests – as seen with meat and grains plants.

Ethanol Market   

  • Hydrous sales have seen another fall during the 1H of Mar.
  • Fuel demand reduction combined with a price parity at the gas stations of over 70% contributed for sales to fall under 700mi litres.
  • The upcoming fortnights should show an even bigger fall in demand due to quarantine measures imposed as a result of the coronavirus pandemic.

Ask the Analyst: What Could Bring the Specs Back into the Market?

  • The current situation for speculation is probably the least positive that it’s been since COVID hit.
  • In this week’s Ask the Analyst, we discuss what it might take for the specs to return to the market.
  • If you’d like us to answer one of your questions in an upcoming edition, please email will@czapp.com.

Jack Haslam

1 year ago

1 min read