Milling of sugar cane in South and surpasses 500 million tons in November - UNICA

17/11/2010 (Bing Translated and edited for English syntax)

The volume of cane sugar processed by the South-Central region of Brazil until the 1st of November reached 500.88 million tons, up
12.64% over the same period of 2009/2010. In the second half of October, the milling reached 30.12 million tons, up 15.21% over the
previous fortnight, when the total was 26.14 million tons.
This increase occurred because of grinding biweekly the second half of October has one more day to grind and made more suitable
climatic conditions for harvesting compared to the beginning of the month.
According to the technical director of Industry Union Cane (UNICA), Antonio de Padua Rodrigues, "the outlook is gradually reducing the
amount of cane sugar processed from the next fortnight, this because the number of production units in operation is in continuous
decline."By the end of October, 44 mills had closed the 2010/2011 season in the Mid-South. On the same date last year, only five units
had completed their activities.

"According to a survey done by UNICA, jointly with other Unions and Associations of the Mid-South, it is estimated that
by the end of November some 140 plants finalize its operations, compared with only 15 units last season. These figures
show the early closure of the current crop in many regions, due to lower supply of raw material, "adds the executive.

According to data compiled by the Center for Sugarcane Technology (CTC), the decline of agricultural sugarcane harvested in October
reached 18.41%, 15.77% higher than the value observed in September. The accumulated since the beginning of the harvest, the
reduction in agricultural productivity has reached 5.75%.
" [If we continue] the downward trend observed [on] farm to date, [the] grind [can be] even smaller than the one disclosed in the latest
estimate of the harvest," concluded the Director of Unica.
Quality of raw material
The amount of total recoverable sugars (TRS) per ton reached 145.87 kg in the second half of October, up 1.70% compared to 143.43
kg obtained in the first fortnight of the month and 13.56% in comparison with the same period in 2009. This increase occurs after the
sharp drop of more than 15% between the first half of October and the last two weeks of September.

However, this recovery in the value of ATR is momentary. Data analyzed by the ATR system, linked to the Council of Producers
of Sugar Cane, Sugar and Alcohol of the State of São Paulo (Consecana - SP) already indicate a decline in quality of raw material from
the first half of November. In the first fifteen days of the month, the ATR sugarcane in São Paulo reached 135.40 kg per tonne against
142.24 kg recorded in late October.
The Accumulated since the beginning of harvest, the number of TRS per ton of raw material was 142.42 kg, up 7.42% over the same
period in 2009.

Production mix
Of the total volume of sugarcane processed in the last half of October, 46.10% went to the manufacture of sugar, above the 42.01%
recorded in the previous fortnight. The increased sugar concentration in the raw material in the last fifteen days of the month justifies
this increase in production mix to sugar.
However, for Rodrigues [noted], "it is difficult to observe a favorable mix of sugar in the next fortnight similar to that recorded in the
second half of October." The fall in the value of the ATR rod found in the first fortnight of November already anticipates the difficult
technique to maximize the production of sugar in the end of harvest, though the prices are appealing, concludes the executive.

Of the total cane sugar processed from the beginning of the season until Nov. 1, the portion allocated to the production
of sugar amounted to 44.94% and for ethanol, 55.06%.
Production of sugar and ethanol

In the second half of October, sugar production totaled 1.93 million tonnes against 1.50 million in the previous fortnight and 1.97 million
in the last two weeks of September. Since Ethanol production totaled 1.38 billion liters, of which 915.90 million liters refer to vehicular
[hydrous] and 464.17 million liters of anhydrous ethanol.
The Accumulated since the beginning of the crop, sugar production reached 30.54 million tons, 23.92% more than observed in
2009/2010 (24,650,000 tons). The production of ethanol increased by 18.62% YoY, reaching 22.95 billion liters, with of which 16.63
billion of hydrous ethanol and 6.32 billion liters of anhydrous ethanol.

Sales of ethanol
Sales of ethanol-producing units of the South-Central region totaled 2.30 billion liters in October, of which 632.06 million liters of
anhydrous ethanol and 1.67 billion liters of hydrated ethanol. Of this total, 2.11 billion liters were destined for the domestic
market and only 191.18 million liters exports.
In the domestic market, there was strong growth in sales of anhydrous ethanol, in October, totaling 573.90 million gallons, 12.07%
higher than the same month of 2009. In the last two weeks of October, the sales volume totaled 292.30 Product million liters, up from
281.61 million liters in the past fortnight.

Domestic sales of hydrous ethanol, in turn, totaled 1.53 billion liters in October, down 2.81% over the same month last year. Cumulative
sales of anhydrous ethanol this season, whereas those directed to supply domestic and foreign markets, totaled 4.22 billion liters, up
2.69% over the same period in 2009. In relation to hydrated ethanol, the volume reaches 11.38 billion liters, compared to 12.26 billion
liters last year reported. It should also highlight the significant increase in domestic sales of ethanol for other purposes in the 2010/2011
season. Between April-October, they reached 633.62 million liters, 15.21% over the same period of 2009. In October alone, the sales
volume totaled 111.58 million product liters, up 14.48% over the same period in 2009. (The small 2009 sugar crop reduced ethanol
supplies – Wayne)


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