Brazil Center-South Sugar Output Cut on Rainfall

Sugar output in Brazil’s Center South, the world’s largest producing region, will be smaller than previously expected as above-average rainfall hurts yields, research firm Datagro said.

Sugar output may fall to 34.7 million metric tons this year, less than an April 27 estimate of 35.15 million tons, Datagro said in a report dated yesterday.

“Producing regions had above-average rainfall for four consecutive months, Guilherme Nastari, a director at Barueri, Brazil-based Datagro, said in a telephone interview today fromNew York. “Rainfall is resulting in lower crop yields and sucrose,” the substance that is processed into sugar and ethanol, he said.

Ethanol production will fall to 24.1 billion liters (6.36 billion gallons) this year, compared with the previous estimate of 25 billion liters, Datagro said. Brazil is the world’s largest sugar producer and exporter.

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