Brazil’s center-south sugar production rose 8.9% in the first half of July when compared with a year earlier, totaling 3.24 million metric tons, data from industry group UNICA showed on Tuesday.

UNICA said in a report that 48.37 million tons of sugarcane were crushed in the period, up 4.2% from a year ago, while ethanol production totaled 2.26 billion liters, a 1.4% increase.

Mills have been looking to allocate more cane to sugar production this season to take advantage of higher prices, with the so-called “production mix” having favoredsugar by 50.01% to 49.99% in the fortnight, according to UNICA.

Output this season has benefited from higher agricultural yields recorded in Brazil’s main production areas, with the industry group saying that data showed yields increased 19.5% in June on a yearly basis.

“Despite the excellent result, it should be noted there is a high participation of younger sugarcane fields in this indicator,” UNICA pondered. “As their participation fades, yield gains are likely to be more moderate in coming months.”

Source: Reuters