Sugarcane crushing in the Center-South region falls 12,86% in June

In the second half of June, production units in the Center-South region processed 42,71 million tons, compared to 49,01 million in the 2024/2025 harvest – a decrease of 12,86%. In the accumulated total for the 2025/2026 harvest through July 1, milling reached 206,2 million tons, compared to 239,95 million tons recorded in the same period in the previous cycle – a decrease of 14,06%.

In the second half of June, one unit began the 2025/2026 harvest. By the end of the fortnight, 257 production units in the Center-South region were in operation, including 237 sugarcane processing units, ten corn-based ethanol producers, and ten flex-fuel plants. During the same period, in the 2024/2025 harvest, 259 production units were operating, including 240 sugarcane processing units, nine corn-based ethanol producers, and ten flex-fuel plants.

Regarding the quality of the raw material, the level of Total Recoverable Sugars (ATR) recorded in the second half of June reached 131,53 kg of ATR per ton of sugarcane, compared to 140,18 kg per ton in the 2024/2025 harvest – a negative variation of 6,17%. In the accumulated harvest, the indicator marks 122,19 kg of ATR per ton, registering a decrease of 4,79% compared to the value observed in the same position in the previous cycle.

Regarding agricultural productivity, data from the Sugarcane Technology Center indicate that the accumulated index for the 2025/2026 cycle, from April to June, registered a drop of almost 11% compared to the same period of the last harvest. "This decline in agricultural yield, combined with a 5% drop in raw material quality, results in a drop in the total amount of ATR per hectare of more than 15% in the area harvested in the Center-South region to date," notes Luciano Rodrigues, Director of Sector Intelligence at Unica.

Sugar and ethanol production

Sugar production in the first fifteen days of June totaled 2,84 million tons, a 12,98% drop compared to the same period in the 2024/2025 harvest (3,27 million tons). Cumulative production from the beginning of the harvest until July 1st totaled 12,25 million tons, compared to 14,29 million tons in the previous cycle (-14,25%).

In the second half of June, ethanol production by units in the Center-South reached 1,92 billion liters, of which 1,17 billion liters were hydrous ethanol (-17,70%) and 742,96 million liters were anhydrous ethanol (-17,00%). In the current agricultural cycle, biofuel production totaled 9,43 billion liters (-14,81%), of which 6,12 billion liters were hydrous ethanol (-13,84%) and 3,31 billion liters were anhydrous (-16,55%).

Of the total ethanol produced in the second half of June, 19,49% was produced from corn, registering production of 373,62 million liters this year, compared to 304,82 million liters in the same period of the 2024/2025 cycle – an increase of 22,57%. Cumulative production since the beginning of the harvest, corn ethanol reached 2,18 billion liters – an increase of 22,12% compared to the same period last year.

Ethanol sales

In June, ethanol sales totaled 2,8 billion liters, representing a negative variation of 3,58% compared to the same period of the 2024/2025 harvest. The volume of anhydrous ethanol sold in the period was 1,02 billion liters – a decrease of 1,68% – while hydrated ethanol registered sales of 1,78 billion liters – a decrease of 4,63%.

In the domestic market, the volume of hydrated ethanol sold by units in the Center-South totaled 1,71 billion liters – a negative variation of 6,23% compared to the same period of the previous harvest.

The most recent price survey (June 29 to July 06, 05), released by the National Agency of Petroleum, Natural Gas, and Biofuels (ANP), showed that in more than half of the municipalities surveyed, hydrous ethanol is economically more advantageous than its fossil fuel competitor, particularly in the states of Mato Grosso, Mato Grosso do Sul, São Paulo, and Paraná, where all cities presented a differential below technical parity. "In the same week, the average parity in the country was 07%, offering a viable alternative for Brazilian consumers to save money and decarbonize," explains Rodrigues.

Anhydrous ethanol sales, meanwhile, reached 981,64 million liters, a 0,72% decrease. "Anhydrous ethanol sales to the domestic market should boost demand for the product over the next two weeks with the start of the E30 phase-in, in addition to positioning anhydrous ethanol as an important tool for expanding the positive environmental and public health benefits of using a fuel with a lower carbon footprint," adds Rodrigues.

From the beginning of the harvest until July 1, ethanol sales by units in the Center-South totaled 8,56 billion liters, a decrease of 2,59%. The accumulated volume of hydrous ethanol totaled 5,49 billion liters (5,10%), while that of anhydrous ethanol reached 3,07 billion liters (2,24%).

CBios market

Data from B3 as of July 11th indicates the issuance of 22,58 million credits in 2025 by biofuel producers. The amount of CBios available for trading held by obligated parties, non-obligated parties, and issuers totals 27,49 million decarbonization credits.

"Adding the CBios available for commercialization and the credits already retired to meet the 2025 target, we already have approximately 80% of the titles needed to fully meet the quantity required by the Program for the end of this year," highlights the director of Unica.