BRAZIL: CNA sees sugarcane crush at 646.34 million tonnes in 2017/18
Published: 12/06/2017, 3:40:15 PM
Brazil's farmers association CNA still expects sugarcane crush in the country to reach 636.34 million tonnes in 2017/18, according to a presentation released Tuesday, reports Sugaronline.
Ethanol output is expected to total 26.1 billion litres.
"Production and productivity are expected to be lower, due to drier climate, less sugarcane and aging of sugarcane," CNA said.
"The fall in sugar price will lead to a reduction in the price of the Total Recoverable Sugars (ATR). The sugar market, with favorable medium and long-term fundamentals, could be helped by the resumption of the ethanol market with the beginning of the recovery of the Brazilian economy."
CNA added that a recovery in Brazil's economy and the implementation of RenovaBio, a program aimed at incentivizing ethanol consumption, could lead to an increase in ethanol production in 2018, reducing sugar supply.
The association added that producers should be attentive to the increase of ethanol imports from the US. Brazil's ethanol imports totaled more than 1.6 billion litres so far this year, despite a 20% tariff applied to import volumes above a quota of 150 million litres per quarter.