Last week's frosts in southern Brazil damaged nearly a fifth of the unharvested cane crop in the principal growing region, an event likely to cut sugar exports from the world's largest producer, agriculture research company Datagro said Wednesday.

 

Severe early morning frosts on July 24 and 25 in three of Brazil's top sugar-cane states devastated large areas. The cold blight comes at the peak the crushing season when more than half of Brazil's expected record 590-million-tonne crop remains unharvested. 65 million metric tons, or 18 percent of the cane standing uncut in fields was damaged by the frost.

 

Frost in tropical Brazil has long been a weather risk for global coffee markets. This frost, though, is the first in recent history that threatens to significantly cut sugar output and its impact will likely extend into the next harvest too.

 

Saving the crop will depend on speed as some fields, where frost has killed the core or gem of the cane plants, will likely rot before they can be harvested.

 

The cold that dropped to zero Celsius and below for at least two days last week, combined with rain, has also reversed the normal composition of sugars in the cane. This will cause mills to favor ethanol production even more than they already have.