Sugar output may drop 6 pct after frost, rain -Brazil's Raizen
* Stronger dollar makes sugar exports more attractive
* Export margins not big enough to change mills' production
* Ethanol is more liquid, offers mills better cash flow
SAO PAULO, Aug 7 (Reuters) - Sugar and ethanol output from Brazil's biggest sugar and ethanol group Raizen Energia, a joint venture between Cosan SA and Royal-Dutch Shell , could fall 6 percent due to recent frost and rains, a local newspaper said.
Pedro Mizutani, Raizen Energia's chief financial officer, said in the Brazilian financial paper Valor Economico's online edition late on Tuesday that two days of frost would reduce crushing at one of its mills in Mato Grosso do Sul state by 100,000 tonnes to 2.05 million tonnes, for example.
"The most damaging effect of the frost will occur next year but it's still too early to quantify this effect," Mizutani said.
The president of sugar and ethanol analyst Datagro, Plinio Nastari, told Reuters that frost damaged 65 million tonnes, or at least 18 percent, of the yet unharvested sugar cane in the southernmost regions of Brazil's growing region.
Nastari said on Tuesday, that he would release a new forecast of the cane crop with an estimate of losses from the frost in about a week to 10 days.
The day after, Brazil's second-largest sugar and ethanol company Biosev SA, which is controlled by French commodities trader Louis Dreyfus, said the frost would reduce the cane it crushed in Mato Grosso do Sul where it operates three large cane mills. Continuación...