Brazil sugar exports seen to rise 15% in upcoming crop year to 32.4mt

Sugar exports from Brazil should increase 15% in the 2023/24 crop year, which started this month, to 32.4 million tonnes, in the face of an increase in sugarcane crushing and favorable market conditions said, on April 25, the attache of the United States Department of Agriculture (USDA).

The new Brazilian sugarcane harvest is forecast at 661.4 million tonnes, a volume 6.5% greater than the previous one. Of this total, 590 million tonnes should be produced in the country’s center-south axis, 46.1 million more than last season.

“The sugarcane crop in the country’s center-south performed well in 2022/23 due to favorable weather conditions.” High sugar prices also ensured that farmers kept their marginal areas for sugarcane plantations, according to a report by the attaché.

“The El Niño effect should cause intense rainfall in the second half of 2023, which could favorably influence the development of sugarcane crops,” it added.

See below Brazil’s sugar (hs 1701) shipments from Jan 2019 to Feb 2023. The data is from DataLiner.

Brazilian sugar exports | Jan 2019 – Feb 2023 | WTMT

Source: DataLiner (click here to request a demo)

The increase in sweetener prices should help mills increase the allocation of raw materials for producing the commodity instead of ethanol.

According to the USDA, the ratio of resources diverted into sugar production should go from 45.2% in the past harvest to 47.8% in 2023/24.

As a result, the attaché forecasted sugar production for 2023/24 at 42 million tonnes, a 10.4% increase over the previous cycle due to the higher volume of sugarcane for crushing.

The scenario allows the world’s largest producer and exporter of sugar to increase its exportable balance.

Source: Money Times

To read the original source, go to: https://www.moneytimes.com.br/exportacao-de-acucar-do-brasil-deve-subir-15-na-nova-safra-para-324-mi-t-diz-usda/

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