Brazil's sugar production fell in late May, the government said

The Agriculture Ministry reported on Wednesday that the sugar production in Brazil's center-south region fell by 24.8% during the second half of the month, compared to the same period a year earlier, and reached a total of?2,19 million metric tonnes.

Rains in some parts of the area caused the data to fall, although the ministry has not commented on the possible causes.

When the weather is rainy, the harvesting of cane and its processing are slowed down because machines cannot enter the fields to cut the cane and transport it. Sugar content is also reduced by higher humidity.

Cane crushing fell 12.9% to 41.23 millions tons in the second half of May, whereas ethanol production increased 1.8% to 2.1 billion liters. Sugar production has been reduced as mills increase ethanol production to take advantage of the higher energy prices.

Analysts polled by S&P Global Energy had lower expectations. According to their survey, sugar production was?at 2,39 million tons while cane crushing was at 44,9 million tons. UNICA, Brazil's sugar industry association, has not yet?released its numbers.

El Nino could mean wetter conditions for the region in Brazil's center-south. The recent rains and more expected in the coming weeks and July are not yet clear if they are early indicators of what forecasters predict to be a powerful El Nino.

In some parts of the country, the coffee harvest is also affected by the 'unusually high moisture at this time of year'.

(source: Reuters)