Grinding in the Center-South breaks historical record and approaches 53 million tons

Sugarcane crushing in the second half of July recorded growth of 7,81%, compared to the same period in the last cycle. 52,96 million tons were processed, the highest amount in the fortnightly historical series, compared to 49,12 million. In the 23/24 harvest, crushing reached 311,32 million, compared to 283,68 million tons recorded in the same period in the 22/23 cycle – an increase of 9,74%.

In the second half of July, 260 production units remained in operation in the Center-South region, 243 of which processed sugarcane, seven companies that manufacture ethanol from corn and nine flex plants. In the same period, in the 22/23 harvest, there were 259 production units in operation.

Regarding the quality of the raw material, the level of Total Recoverable Sugars (ATR) recorded in the second half of July was 144,02 kg per ton of sugar cane, against 148,19 kg per ton in harvest 22 /23 – negative variation of 2,81%. In the accumulated result for the harvest, the indicator shows a value of 132,89 kg of TRS per ton (-0,47%).

Sugar and ethanol production

Sugar production in the second half of July totaled 3,68 million tons. This quantity, when compared to that recorded in the 22/23 harvest of 3,31 million tons, represents an increase of 11,29%. In the accumulated since April 1st, the production of the sweetener totals 19,17 million tons, against 16 million tons in the previous cycle (+19,79%). For the second fortnight in a row, more than 50% of the ATR processed was destined for the manufacture of sugar. Production per ton of sugarcane was, however, more than 2 kilos higher than in the first half of July due to the higher concentration of sucrose and the consequent gains in industrial extraction.

In the second half of July, 2,46 billion liters (+1,35%) of ethanol were manufactured by units in the Center-South. Of the total volume produced, hydrated ethanol reached 1,47 billion liters (+3,83%), while anhydrous ethanol production totaled 982,44 million liters (-2,16%). In the accumulated since the beginning of the current agricultural cycle until August 1st, the total production of biofuel was 14,40 billion liters (+5,15%), of which 8,30 billion were hydrated ethanol (-2,60%) and 6,10 billion anhydrous (+17,92%).

Of the total ethanol production recorded in the second half of July, 10% came from corn, whose production was 248,27 million liters this year, against 191,51 million liters in the same period of the 22/23 cycle – an increase of 29,64%. In total since the beginning of the harvest, corn ethanol production reached 1,95 billion liters – an increase of 47,17% compared to the same period last year.

Ethanol sales

In July, ethanol sales totaled 2,53 billion liters, which represents a positive variation of 1,32% compared to the same period in the 22/23 harvest. The volume of anhydrous ethanol sold in the period was 1,21 billion liters – an increase of 15,59% – while hydrated ethanol registered sales of 1,31 billion liters – a drop of 9,04%.

Despite the evident increase in the sales flow of hydrous ethanol in the second half of July when compared to the first fortnight, the volumes sold are still lower than in July 2022. In particular, the export of 105,79 million liters in the month – an increase of 191% – was a positive result for the product. Regarding the domestic market, the volume of hydrated ethanol remained below that observed in the previous cycle, with 1,21 billion liters sold, resulting in a decline of 14,20%. With regard to anhydrous ethanol, sales remained robust with a flow destined for the foreign market of 184,89 million liters (+62,20%) and 1,03 billion for the national market (+9,91% ).

It is worth highlighting the notable result of exports which, in the aggregate of products, totaled 290,68 million liters sold – a positive variation of 93,36%. The exit to the foreign market presented itself as an important destination for Brazilian production, whose demand for hydrated ethanol has fallen short of previous cycles.

In the 23/24 harvest, ethanol sales total 9,59 billion liters, which represents an increase of 0,55%. Hydrated alcohol comprises a volume of sales of 5,26 billion liters (-8,84%), while anhydrous alcohol is sold at 4,33 billion (+14,91%).

CBios market

B3 data recorded up to August 8th indicates the issuance of 19,44 million CBios in 2023. Until the aforementioned date, the obligated party of the RenovaBio program had acquired around 53,32 million decarbonization credits. This value considers the obligated party's passing stock in 2021 added to the credits acquired in 2022 and 2023, to date, whether they are active or retired. The selected time horizon covers acquisitions that will comprise the credits used to meet the goals of 2022, whose deadline had been postponed, and 2023.