UPDATE 1-Brazil's Cosan says better weather improves cane yields
(Add details, quotes from call with analysts)
SAO PAULO May 7 (Reuters) - Brazilian conglomerate Cosan SA expects cane crushing in its sugar and ethanol division in the 2015/16 crop to be closer to the top of a guidance of between 57 and 60 million tonnes that it gave investors.
Cosan's CEO Nelson Gomes said on Thursday that better weather since the end of the last crop in December is likely to increase cane yields compared to the 2014/15 season.
"At this moment, we are indicating a crushing volume closer to the guidance's top rather than the middle of it," said Gomes in an earnings call with analysts.
Raizen, the sugar and ethanol joint venture between Cosan and Royal Dutch Shell, processed 57 million tonnes of cane in the 2014/15 crop.
Cosan expects Raizen to produce more sugar in the new crop, between 4.2 million and 4.4 million tonnes, compared to 4.08 million tonnes produced last season, which was hurt by drought.
Ethanol production is forecast between 1.9 and 2.1 billion liters, against 2.06 billion liters in 2014/15.
Gomes said higher volumes of ethanol sales seen in Brazil this year will lead to a reduction of stocks to normal levels towards the end of the new crop.
Cosan and other large groups in the sector carried a larger than normal volume of ethanol stocks between the old and the new crop, waiting for better prices. Continuación...