Brazil processed significantly more sugar cane in the second half of June

According to figures from the Brazilian Sugarcane Industry Association (UNICA), 46.5 million tons of sugar cane were processed in the key Center-South growing region in the last two weeks of June. The figure for the first half of June was 39.4 million tons. Processing of the sugar cane was facilitated by the dry weather in the region. This exceeds the expectations of market participants by as much as 3 million tons. 

"Sugar production also increased from 1.97 million tons to 2.51 million tons in the second half of June. According to UNICA, however, mills continue to favour the production of ethanol (56.4%) over sugar (43.6%). Following publication of these figures, sugar shed the gains it had made during the day and closed slightly down at 12.31 US cents per pound", notes Commerzbank.