Bunge Brazil hits record cane crushing results

Bunge Açucar & Bioenergia, Bunge’s Brazilian sugar unit, announced in May and June some of the best cane crushing volume results.

According to the company, eight mills operating in Brazil processed 2.65m tons of sugarcane in May, their highest record since they began operations in Brazil in 2007.

Unidades da Bunge batem recorde de moagem em maio https://t.co/4wb83uR92L pic.twitter.com/RXuOCOm1tZ

— DATAGRO (@DATAGRO) June 28, 2019

Operations continued strongly in June when it reached the average milling peak for 30 days.

This year, the center-southern area of Brazil had a better harvest. The agricultural yields were about 5% higher than the previous harvest but fell by 2% in the first half of June, according to Única – Sugarcane Agroindustry Union of the State of São Paulo.

Bunge stated that the high volume of cane crushing is also the result of improvements in its industrial capacity.

In the past, the US company has tried to sell its sugar operation, but without success. Last year, the company tried to make an initial public offering (IPO) of the unit’s shares in São Paulo, but then canceled the plan, citing adverse market conditions.

Since then, market conditions have improved for ethanol in Brazil, with strong demand and better prices. However, the sugar segment remains globally slow.

The following graph (based on Unica data ) shows Brazil’s sugar and ethanol production patterns in the last six seasons:

Source: Reuters

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