Brazil sugar output seen at over 40 mln tns, 2nd highest on record

Brazil is expected to have an output of 40.3 million tonnes of sugar in the new season that started in April, the second highest amount on record, as the climate has been positive and mills are well capitalized to provide crops with adequate care.

According to a report published on Tuesday by local consultancy Job Economia, mills are expected to have a strong focus on sugar production, at the expense of ethanol, as the price for the sweetener SBc1 hovers around the highest in more than six years.

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)

Job Economia projects mills will allocate a near record amount of sugarcane to sugar production, at 46.7%, versus 45.5% in the previous season. Sugar production in the country, considering both the Centre-South and the North/Northeast areas, would grow by 3.15 million tonnes from the previous crop.

Ethanol production is seen growing less (1.8 billion liters) to a total of 33.5 billion liters in 2023/24.

“Mills will go max on sugar,” said Julio Maria Borges, the consultancy’s main analyst, adding that this week’s rise in energy prices after the OPEC+ surprise oil cut is unlikely to change that outlook.

Brazil’s sugar production is particularly important for the global sugar market this year since there are problems in several other producers such as India, China and the European Union.

A good production level in Brazil will prevent a large deficit in the global supply of the sweetener.

Borges said that Brazilian exports are expected to grow by 2.67 million tonnes in 2023/24 to 29.75 million tonnes.

Source: Nasdaq with Reuters

To read the original news report, see: https://www.nasdaq.com/articles/brazil-sugar-output-seen-at-over-40-mln-tns-2nd-highest-on-record

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