Sugarcane crushing in the Centre South of Brazil for the second half of November fell by 27% compared to the first half of November, driven by heavy rains in the sugarcane growing regions, according to the latest UNICA report. This has seen only 47 mills finish their crushing by the end of November, against 137 units which were finished this time last year.
The total recoverable sugar from the cane also fell, which is expected to see more sugarcane be used in the production of ethanol than sugar in the coming fortnight.
Sales data showed a considerable slowdown in the growth of domestic hydrous ethanol demand, which grew 40% YoY in September, 36.44% in October, and only 25.15% in November, with domestic sales for November sitting at 1,439,226m3. This was driven by balance which was regained in price differences at the pump between blended gasoline and hydrous ethanol. The price differential betweel the two fell from over 35% up until September, which to under 30% by the beginning of November, according to ANP data, which has now seen more flexi fuel vehicle users opt for blended gasoline over ethanol.
This has seen demand for anhydrous ethanol rise in November to 809,093m3, up 6% MoM and 8% YoY. Foreign sales of anhydrous ethanol also rose by 17% MoM to 137,667m3, with hydrous ethanol sales to the foreign market falling 16% MoM to 131,546m3.