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Sugar-Cane Output Estimate for Brazil Region Cut by Archer

Sugar-cane output in the main growing region in Brazil, the world’s largest producer of the sweetener, will be lower than previously forecast for the season starting this month, according to Archer Consulting.

Cane production in center south will total 508 million metric tons in 2012-13, below the prior 512 million-ton estimate, Arnaldo Luiz Correa, a director at the Sao Paulo-based consultancy, said in a report e-mailed April 28. The estimate was Archer’s fourth for the crop. Production in 2011-12 was 493.3 million tons, according to industry group Unica.

Millers in the region will produce 32.51 million tons of sugar, above a previous forecast of 32.47 million tons, as more cane is used to make the sweetener rather than ethanol, according to Archer’s report. Sugar output in the region amounted to 31.3 million tons in 2011-12, Unica data show.

Ethanol production may be 21.2 billion liters (5.6 billion gallons), down from a previous forecast of 21.4 billion liters, Archer estimated. Millers in the area produced 20.5 billion liters of the biofuel last season, according to Unica.

To contact the reporter on this story: Isis Almeida in London at ialmeida3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.

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