Corn ethanol grows 36% this harvest; sugarcane, 5% – 11/29/2023 – Vaivém

The investments made by the sector and the favorable climate, especially in the first semester, favored sugarcane crops, and production in the 2023/24 harvest is expected to reach a record of 678 million tons, 11% more than in previous.

The numbers come from the third harvest survey by Conab (National Supply Company), which estimates an area of ​​8.35 million hectares of planting in the country, a smaller number than that of 2022/23.

Despite the smaller area, the harvest grows due to the increase in the average crop yield, which will reach 81.1 tons per hectare, in Conab’s assessment.

The scenario is better for the Southeast, which has an estimated production volume of 435 million tons, 12% more than in the previous harvest. The average productivity in this region rises to 85 tons per hectare.

In the Central-West region, productivity will be 80.4 tons per hectare, above the 72.4 tons in the South and 62.2 tons in the Northeast.

With more favorable prices on the foreign market, due to supply difficulties from countries competing with Brazil, sugar production is expected to reach 46.9 million tons, 27% more than in the previous harvest.

Conab estimates that sugarcane ethanol production will reach 28 billion liters, 5.5% more than in 2022/23. The Southeast leads with 15.7 billion liters.

Greater corn production and new investments in the Central-West will take ethanol production from this cereal to 6.1 billion liters this harvest, 36% more than in the previous one.

Of this volume of corn ethanol, 4.4 billion will be produced in Mato Grosso. According to Conab’s calculations, corn and sugar cane will generate 34 billion liters of fuel.

Corn ethanol production is advancing rapidly in Brazil. The volume to be produced in this harvest will exceed that of the previous harvest by 36%. The biggest evolution occurs in Goiás, where the harvest grows by 55%.

On the edge The balance of global sugar stocks is tight, according to consultancy Stonex. After a lower supply than consumption in the 2019/20 to 2021/22 harvests, the balance was positive in 2022/23, but returned to balance in 2023/24.

At the limit 2 According to the consultancy, world production for this harvest will be 192.4 million tons of sugar, for a demand of 192.2 million.

Inflation The prices of agricultural products rose 0.69% this month on a wholesale basis, according to FGV’s IGP-M. Even with the increase, the accumulated result for the year indicates a drop of 14.7%, a retraction well above the 3.5% average for the IPA (Wholesale Price Index) for the same period.

Contributions Soybean meal, cassava and coffee beans are among the products that put the most pressure on the inflation rate. Milk, beans, beef and papaya led the declines in the period.

Intelligence…Agribusiness is becoming increasingly complex, dynamic and dependent on a series of factors, ranging from the international market, the cost of the dollar, commodity and input prices. And, currently, more and more of the climate.

…artificial Artificial intelligence can handle this complexity well. The work is done with a large database and the company, by learning to work with this information, is able to carry out better production planning and operate logistics better.

Right moment A seed company, for example, will know better when to make the product available and in which municipality, according to an assessment by Alexandre Gallotti, from 4intelligence.

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