• Weather was dry throughout the 1H of June, but mills reported a slowdown in pace.
• Despite slowdown in operations, CS registered a record sugar output of 2.5mmt for the period.
• Sugar mix at 47.1% slightly lower than initial estimate.

Summary Table 1H June

Excellent Weather

• Apart from PR state, CS registered excellent weather across the region in the 1H of June.
• Still, crush pace saw a slowdown with 41.7mmt of cane processed in the fortnight.
• We believe that the mills in operation had to slow down a bit in order to cope with a high ATR and desire to max sugar mix – average daily sugar output saw only a small reduction from the previous fortnight.

Sugar Daily Output – pushing sugar production

• What remains a concern is the lack of rains in CS – cumulative rains since January are 11% below historical average.
• Other than MG, all other cane producing states have reported drop in precipitation since the beginning of the year.
• Mills are assessing the potential implications on ag. yields of cane harvested from August onwards.
• This could have the potential to reduce CS cane availability.

Ethanol Market

• Hydrous sales by the mills reached 0.74bi litres in 1H June.
• Demand has been increasing with the social isolation measures being eased in some regions.
• The prospects for ethanol demand remain positive in the upcoming weeks.

Fortnightly Hydrous Sales – slow and steady ethanol recovery