Brazil Sugarcane Rebounds
20 April 2006 Brazilian sugarcane production is expected to be up 35 million metric tons (MMT) this season, to reach a total of 420 MMT, according to the Agricultural Trade Office / Sao Paulo. This rebound comes after a 2005/06 harvest of 385 MMT, which was lower than expected due to dry weather during the development of the stalks (November 2004 – March 2005), which affected yields, according to the US Department of Agriculture’s Foreign Agriculture Service (USDA/FAS).
Improved results for 2006/07 are forecast on the strength of regained yields in the center-south and north-northeast regions, as well as expansion of center-south production. Despite favorable prices, much of the crop is already slated for use in plants to produce ethanol for domestic use and export. The sugar-ethanol industry is strongly committed to producing about 800 million liters of ethanol by the end of April, in order to avoid any lack of product at the pump in Brazil, reports USDA-FAS.
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