Conab provides 11% increase in production from Brazil in 2013/14

The Brazilian production of sugarcane is expected to grow 11% in 2013/14 season, which began on April 1, to 653.8 million tons, according to the estimate issued by the national supply company (Conab). For the Center-South region that represents more than 90% of production in the country, the Government also predicted 11.5% growth, to 594 million tons.
The survey, conducted between May 3 and March 16, surprised by the ambitious forecast for the supply of sugar in the Center-South region. The company estimated a production of 39.1 million tons of the commodity in the region, which, if confirmed, will mean an increase of 14.6%. For ethanol, whose prices are more attractive to the producer, to a lower predicted, Conab of 9.2%, to 23.8 billion liters (10.3 billion liters of anhydrous and hydrated 13.5 billion liters).
The number for the sugar has been received with disbelief by the market. The English Czarnikow trading, for example, believes that there is sufficient capacity of crystallization in South Central to the production of 39 million tons of sugar.
In addition, according to trading, there is no price on the market incentive to stimulate this level of production of the commodity, since ethanol prices follow more attractive than those of sugar. The anhydrous, which is mixed with gasoline, for example, is paying up to 12% more power than the commodity.
For the Brazilian production of sugar, Conab predicted 43.55 million tons, a growth of 13.61% in relation to the 2012/13 season. The total area devoted to culture in the country grew by 4.8% this year to 8.89 million hectares, and the average productivity of plantations should be 5.9% higher, around 73.52 tonnes per hectare.
According to Conab, the plants should be for 331.65 million tons of sugar cane (an increase of 13.22% compared to the last harvest) for the production of sugar. Other 322.15 million tons (8.84%) increase should be ground for the manufacture of ethanol, whose total volume should grow up 8.99 percent to 25.76 billion liters in the country. The production of anhydrous alcohol (blended with gasoline) should grow 15.35%, to 11.36 billion liters. The production of hydrated alcohol (sold at the pump) must total 14.4 billion liters, an increase of 4.45%. (FB and SAMUEL)