South-Central region reduces focus on sugar and prioritizes corn ethanol.

In the first half of October, production units in the Center-South region processed 34,04 million tons, compared to 33,94 million in the 2024/2025 harvest. In the accumulated period from the beginning of the 2025/2026 harvest until October 16th, milling reached 524,96 million tons, registering a 2,78% decrease compared to the 539,98 million tons registered in the same period of the previous cycle.

In the first half of October, 255 production units were operating in the Center-South region, including 234 units processing sugarcane, ten companies producing ethanol from corn, and eleven flex-fuel plants. During the same period of the previous harvest, 258 production units were in operation.

In the first fifteen days of October, 12 mills finished grinding. In total since the beginning of the harvest, 18 mills have already completed processing the sugarcane, compared to 12 mills in the same period of the previous cycle.

Regarding the quality of the raw material, the level of Total Recoverable Sugars (TRS) recorded in the first half of October reached 158,78 kg of TRS per ton of sugarcane, compared to 160,32 kg per ton in the 2024/2025 harvest – a decrease of 0,96%. In the accumulated total since the beginning of the 2025/2026 harvest, the indicator stands at 137,53 kg of TRS per ton, registering a decrease of 3,40% compared to the value observed in the same period of the previous cycle.

Sugar and ethanol production

Sugar production in the first fifteen days of October totaled 2,48 million tons. In the accumulated period from the beginning of the harvest until October 16th, the production of the sweetener totaled 36,02 million tons, compared to 35,70 million tons in the previous cycle (+0,89%).

In the first half of October, the proportion of raw material directed towards the manufacture of sweeteners fell by three percentage points, from 51,3% to 48,2%. The result is even more significant in the states of São Paulo and Paraná, where the rates fell by 3,4 and 9,1 percentage points, respectively.

According to Luciano Rodrigues, Director of Sectoral Intelligence at Unica, "since the beginning of September, there has been a noticeable downward trend in the proportion of sugarcane directed towards sugar production. Initially, this movement was concentrated in the producing units of the Central-West region states, but now it has also intensified in important sweetener production hubs, such as São Paulo and Paraná."

In the first half of October, ethanol production by plants in the Center-South region reached 2,01 billion liters, comprising 1,24 billion liters of hydrated ethanol (-5,61%) and 771,72 million liters of anhydrous ethanol (+6,93%). In the current agricultural cycle, total biofuel production reached 25,04 billion liters (-8,23%), with 15,62 billion liters of hydrated ethanol (-10,53%) and 9,41 billion liters of anhydrous ethanol (-4,15%).

Of the total ethanol obtained in the first half of October, 18,41% was produced from corn, registering a production of 370,56 million liters this year, compared to 353,13 million liters in the same period of the 2024/2025 cycle – an increase of 4,94%. In the accumulated total since the beginning of the harvest, corn ethanol production reached 4,85 billion liters – an increase of 17,23% compared to the same period last year.

Ethanol sales

In the first half of October, ethanol sales totaled 1,45 billion liters. The volume of anhydrous ethanol sold during this period was 559,48 million liters – an increase of 5,03% – while hydrated ethanol registered sales of 889,11 million liters – a decrease of 6,74%.

In the domestic market, the volume of hydrated ethanol sold by mills in the Center-South region totaled 869,90 million liters, representing a 5,80% decrease compared to the same period of the previous harvest. Sales of anhydrous ethanol, in turn, reached 559,48 million liters, increasing by 5,11%.

In the accumulated period from the beginning of the harvest until October 16th, ethanol sales by units in the Center-South region totaled 18,97 billion liters, registering a decrease of 2,05%. The accumulated volume of hydrated ethanol totaled 11,87 billion liters (-5,56%), while that of anhydrous ethanol reached 7,09 billion liters (+4,45%).

CBios market

Data from B3 up to October 29 indicate the issuance of 35,56 million credits in 2025 by biofuel producers. The amount of CBios available for trading held by the obligated party, non-obligated party and issuers totals 30,87 million decarbonization credits.

"Adding together the CBios available for trading and the credits already retired to meet the 2025 target, we already have about 105% of the titles needed to fully meet the quantity required by the Program by the end of this year." This calculation includes the accumulated outstanding balance from previous targets and adjustments resulting from long-term contracts, highlighted the Unica executive.