Green Pool Raises Brazil Area’s Cane Output and Cuts Sugar

Sugar cane output in Brazil’s center south, the main growing region of the world’s biggest producer, will be bigger than estimated due to higher agricultural yields, according to Green Pool Commodity Specialists Pty.

Cane production in the area will total 505 million metric tons in the 2012-13 season under way there, the Brisbane, Australia-based researcher estimates. That’s 2.4 percent higher than the 493 million tons projected last month. Production in Brazil’s center south fell for the first time in a decade in 2011-12 to 493.3 million tons, said industry group Unica.

“Agricultural yields are increasing,” Tom McNeill, a director at the company, said in an e-mailed response to questions today. The sugar content in the cane this season “looks poor.”

Millers in the area will produce 30.7 million tons of sugar, down from a previous estimate of about 31 million tons because of lower sugar content in the cane, he said. Sucrose levels for the season through July 15 are 3.4 percent lower than in the same period last year, industry association Unica’s data showed.

Sugar cane production in the first half of July alone climbed 3.9 percent to 42.2 million tons after dry weather helped accelerate harvesting, Unica said on July 25. For the season, production is still lagging 22 percent, as above average rains in May and June delayed the crop, the data showed.

“This six-week period, from 1 July to mid-August, if it remains mostly fine weather, will give the Brazilian industry a much needed shot in the arm both from getting the harvest moving, and getting revenue in,” McNeill said. “Both are very positive for the sector, which has been struggling in recent years.”

Sugar cane growing areas will get dry weather through the beginning of August, Celso Oliveira, a meteorologist at weather forecaster Somar Meteorologia, said by phone from Sao Paulo yesterday.

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 ccarpenter2@bloomberg.net

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