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Sugar Forecast for Brazil Region Cut to 32.7 Million Tons: Unica

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Sept. 20 (Bloomberg) -- Sugar mills in Brazil’s Center South, the world’s largest-producing region, will make less of the sweetener than previously forecast after excess rain reduced the quality of the cane that’s being harvested, industry association Unica said.

The region, which accounts for about 90 percent of Brazil’s output and one-fifth of the world’s sugar, will produce 32.7 million metric tons of the sweetener in the 2012-2013 crop year that started on April 1, down from an April forecast of 33.1 million tons, Sao Paulo-based Unica said today at an event in Sao Paulo.

Mills in the region will process 518.5 million tons of sugarcane, more than the 509 million Unica estimated before. Ethanol output is forecast at 21.1 billion liters (5.6 gallons), down from 21.5 billion in the previous estimate, Unica 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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