Please visit our price discovery tools at primadiscovery.com

Agriculture Americas Ethanol Europe

Brazil sugar cane harvest trails due to wet weather

  • With the sugarcane harvest in Brazil well underway, figures from UNICA suggest that rains will affect the amount of sugar harvested but producers are still unlikely to switch to ethanol production. Data shows that the Centre-South harvest was down nearly 30% year on year with a 5% lower yield per tonne. Ethanol production however is running close to last year’s levels, but internal sales are much higher as the domestic market increases its consumption of hydrous ethanol. Exports are currently running behind last year’s volumes, anhydrous production is around 20% lower but hydrous ethanol production is up 25%. Overall ethanol exports are 42% below last season, with 288,972 k cbm exported so far against 499,657 k cbm the same time last year.

 

  • UK real estate agent Savills has published data pointing to a decrease in UK farmland values. The company warned in April that the 250% price increase over the past 10 years was slowing as agricultural prices decreased and other types of land were offering better returns. In their latest data they record the first drop in agricultural land value for over six years. This has led to some farmer selling though the company notes that farmers represent less than 45% of the actual parties involved in farmland sales with 55% being corporate or institutional.

 

  • The IGC have raised their global grain production estimates, downplaying fears that the recent warm spell in Europe damaged crops at crucial stage. The world wheat estimate was cut by 1MMT to 710 MMT, despite widespread reports that wet weather in the US was leading to vomitoxin issues, particularly in Michigan and Ohio. Hagberg numbers, a measure of kernel sprouting, which cuts suitability for milling, use have also fallen below 2 year lows according to reports from Illinois and Missouri.

Leave a Reply