UNICA: Brazil June Ethanol Output Down

NEW YORK (DTN) -- The Union of Sugarcane Industry Association, Brazil's largest trade group for sugarcane and ethanol producers, said in a report Tuesday, June 23, that sugarcane processing in the country's south-central region eased during the first half of June after declining during the second half of May.

The report said 39.4 million tons of sugarcane was crushed in the two-week period ended June 15, down 2.43% compared to the amount crushed during second half of May and 5.2% lower compared to the first half of June 2014.

The decline in cane crushing from the year prior is partly explained by fewer mills operating in June, 264, compared with 271 a year earlier.

In Brazil, sugarcane is the feedstock for ethanol production.

The report also showed 1.66 billion liters of ethanol was produced during the first half of June, down 4.6% from the amount produced in the second half of May. Of that total production, 638.3 million liters were anhydrous ethanol while 1.02 billion liters were hydrous ethanol. Hydrous ethanol volume jumped 10% year on year.

On ethanol sales, the report said 1.19 billion liters of ethanol were sold during the first half of June, down 47.3% from sales volume for the second half of May but up 29.6% year on year. Of the total sales, 60 million liters were for exports while 1.13 billion liters were sold to domestic consumers in Brazil.

Most of the sales were hydrous ethanol, which was in high demand in the domestic market. The UNICA data shows hydrous ethanol sales doubled year-on-year to 737 million liters during the two weeks ended June 15.

The United States is among the countries that imports Brazilian ethanol.

George Orwel can be reached at george.orwel@dtn.com