The forecasted sudden plunge in Brazil’s sugar production seems to be occurring as sugar output in the country’s Center South region, which accounts for 90% of Brazil’s total sugar output, fell by 41% compared to the second half of October, and 39% when compared year on year. Total production from Center South for 2014/15 which began in April, reached 30.71 million tons – down 1 million tons from the year before. The plunge is a reflection in part of mills producing more ethanol than sugar because of current prices. In the first half of November only 40.3% of Center South can has been processed into sugar – down 7.6% year on year. However, the plunge is also indicative of a 33% drop in cane crushing to 23.1 million tons in the first half of November and a 28% drop year on year, and a closing of a quarter of the Center South sugar mills. These declines have long been predicted, and it was expected that they would have a positive impact upon prices, however, because they have occurred so late in the season, the impact will be minor if at all.
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