Brazil Center South Sugar Forecast Cut to 31.3 Million Tons

Sugar mills in Brazil’s Center South, the world’s largest-producing region, will make less of the sweetener than previously expected as yields decline, said Plinio Nastari, head of industry researcher Datagro Ltd.

The region, which accounts for about 90 percent of the South American country’s sugar and ethanol output, will likely produce 31.3 million metric tons of the sweetener in the 2012-2013 crop year that started on May 1, down from a previous forecast of 32.7 million tons, Nastari said today at an event in Sao Paulo.

Center-South mills will produce less sweetener than expected because the sugarcane that is being processed is not yielding as much sucrose as expected, Nastari said. Sucrose is the substance that is processed into sugar and ethanol.

Mills in the region will process 512.1 million tons of sugarcane, more than the 508.7 million tons Datagro estimated before. Ethanol output is forecast at 20.5 billion liters, more than the 20.3 billion forecast before, Nastari said.

The region will export 22.3 million tons of sugar and 1.75 billion liters of ethanol from the current harvest in the crop year that started in May, he said.

For all of Brazil, the sugar production outlook was cut to 35.7 million tons from 37.2 million, while the estimate for sugarcane crushing was raised to 572.6 million tons from 570.8 million, Nastari said.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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