By Roberto Samora and Marcelo Teixeira
SAO PAULO (Reuters) – Sao Paulo stated there have been no extra energetic fires in sugarcane fields within the state on Monday following a surge in circumstances since late final week, however dozens of municipalities are nonetheless on excessive alert for fires.
Sao Paulo is by far the biggest sugar producing state in Brazil, the world’s prime producer and exporter of the sweetener. Extraordinarily dry situations after months with out rain led to a surge in unintentional fires that rapidly unfold to 1000’s of hectares of cane fields that burned into the weekend.
Brazil’s largest sugar group Raizen SA stated on Monday it resumed operations at its Santa Elisa mill on Sunday. The plant needed to be evacuated and shut on Thursday as a result of proximity of the fires.
Brazil’s sugar and ethanol business group UNICA stated it should begin to make an evaluation of the scenario within the fields within the coming days. The group stated its related mills labored with the Sao Paulo authorities in current days to fight the flames.
Sugar costs jumped greater than 3% in New York on Monday following the Brazil fires.
The burned sugarcane might nonetheless be harvested and processed, stated Caio Carvalho, a sugar skilled with Canaplan consultancy, however he added that mills might want to rush to do it quickly as a result of the cane begins dropping high quality after simply a few days following the burning.
Citi analysts stated the drought and the fires will possible have a unfavourable affect, as nicely within the subsequent crop in 2025, since some burned fields had cane that was already rising for the subsequent season.
The Sao Paulo authorities stated that 48 municipalities within the state have been nonetheless below excessive alert for fires.
Some areas within the southern a part of the state acquired mild rains over the weekend, however the forecast is for dry climate in coming days.