Thursday, June 29, 2006

BRAZILIAN 05-06 SUGAR CANE HARVEST SMALLER THAN EXPECTED

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Brazilian firm Datagro Consulting reduced its projections for the sugar cane harvest for the 2006-07 season in Brazil’s Center-South region. Sugar cane production is now estimated at 363.5 million tons, 7.9% above the 2005-06 cycle, which came in at 336.5 million tons. Datagro’s first estimate for this season indicated a supply of 368.5 million tons of cane.

Plinio Nastari, Datagro’s President, explained that the drop in production reflected the effects of the recent drought in Brazil’s Center-South region. “The dry weather took a toll on the sugar cane to be processed between October and November 2006”, he said.

Sugar production in Brazil’s Center-South region is estimated at 24.65 million tons, 12% above the previous year’s production, which totaled 22.014 million tons. The supply of ethanol in the region has been estimated at 15.13 billion liters, 5.6% above the figure for 2005-06: 14.4 billion liters. Sugar exports from refineries in the region have been estimated at 16.16 million tons, 11.1% above shipments in 2005-06. Ethanol shipments in the Center-South have been estimated at 2.55 billion liters, 28% above the levels for the previous harvest: 1.99 billion liters.

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