CS Brazil 26/27 Crop Update: Cane Crushing Slows in 2H May Due to Rainfall

● Cane crushing in CS Brazil reached 41.55 mmt in 2H May (-13.1% YoY), totaling 144.71 mmt on a cumulative basis since April 1st (+15.8% YoY), according to UNICA.

● Rainfall recorded in key producing regions impacted the pace of the crop, particularly in the state of São Paulo, where crushing fell 21.7% in 2H May.

● TRS level increased 1.1% to 125.87 kg/tc in 2H May, bringing the cumulative average since April 1st to 119.73 kg TRS/tc (+2.4% YoY).

● Sugar production mix fell 8.0 p.p. YoY to 44.17% in 2H May, averaging 41.42% since April 1st (-8.7 p.p. YoY).

● Sugar production totaled 2.20 mmt in 2H May (-25.6% YoY), reaching 6.84 mmt on a cumulative basis since April 1st (-2.0%).

● Ethanol production increased 4.6% YoY to 2.13 billion liters in 2H May, of which 413 million liters were produced from corn (+12.4% YoY).

● Since April 1st, total ethanol production reached 7.54 billion liters (+31.5%), of which 1.57 billion liters came from corn (+8.6%).

● Hydrous ethanol sales for the domestic market reached 1.77 billion liters in May (-2.8% YoY), while anhydrous ethanol sales totaled 1.09 billion liters (+1.7% YoY).