Brazil: Sugar Cane Milling Rises in Early May, Ethanol Production Jumps Significantly

Sugar cane milling in Brazil's Center-South region reached 42.35 million tons in the first half of May for the 2026/27 harvest, marking a 1.4% increase compared to the 41.78 million tons processed during the same period in 2025. This data, based on calculations by Reuters from the Ministry of Agriculture's updated figures, also revealed a significant jump of over 20% in ethanol production, while sugar output saw a decline. For the season that commenced in April, cumulative milling has totaled approximately 105 million tons, representing a substantial 34% increase compared to the corresponding period in the 2025/26 harvest. This accelerated pace is attributed to mills in the country's main producing region starting their operations earlier than last year, benefiting from drier weather conditions and higher yields from the new crop. The Ministry of Agriculture's figures offer insight into the operational tempo up to mid-May. While Unica, the representative body for the sugar cane and bioenergy industry, is still consolidating its data for the period, their previous reports indicated that by the end of April, sugar cane milling had advanced by 74.58% year-on-year. According to ministry data sourced from industry companies, sugar production in the first half of May amounted to 2.12 million tons, a 13.2% decrease from the 2.44 million tons recorded a year prior. This reduction reflects a strategic decision by the industry to allocate more sugar cane towards ethanol production, as the prices for the biofuel have been more remunerative than those for sugar.