Brazil’s center-south cane crop should reach a record 640 million tonnes in 2017/18, compared to an estimate for the current crop of 628 million tonnes, as mills slightly expand planting and crop care, consultancy Agroconsult said on Monday.
“Mills are making more money this year. Many of them will have the resources to better prepare the next crop, despite the aging fields,” said Agroconsult’s sugar and ethanol analyst Fabio Meneghin in a presentation at the NovaCana Ethanol Conference in Sao Paulo.
Meneghin said center-south mills are earning on average 136 reais ($40) per tonne of processed cane this year, compared to 123 reais per tonne last season, as sugar prices rise on the expectation of two years of global supply deficits.
Agroconsult expects mills to be able to crush the current crop on time, by the end of the ideal processing period in December, despite widespread rains in May and June.
The weather has been favorable lately, leading to harvesting and crushing around the clock, he said.