Brazil’s Sugar Exports Hit New Annual Record by October, Secex Reports

Brazil’s sugar exports hit a new annual record by October, outperforming 2023 levels, according to data from the Foreign Trade Secretariat (Secex). The surge comes amid a tightened global sugar market, with India, the world’s second-largest producer after Brazil, imposing export restrictions that have boosted demand for Brazilian sugar.

According to consultancy Argus, India’s export bans have redirected significant global demand to Brazilian mills, which account for roughly 70% of global raw sugar exports. Indonesia has now emerged as the top destination for Brazilian sugar, surpassing China, with Egypt and the United Arab Emirates also increasing their imports, according to Brazilian government data through September.

The government agency is set to release comprehensive export volumes for October, but preliminary figures from Secex through the fourth week indicate a total of 31.7 million tonnes exported. This volume exceeds the full-year export total of 31.3 million tonnes recorded in 2023.

As of the fourth week of October, exports reached 3.29 million tonnes, with additional volumes expected once the fifth-week figures are included. This adds to the 28.4 million tonnes Brazil shipped from January through September.

Brazil’s strong export performance has been supported by ample stockpiles from last season’s record harvest, enabling high volumes in early 2024. According to Brazil’s National Supply Company (Conab), the increase in exports has coincided with a smaller sugarcane crop this year compared to the previous record-setting season.

“The rise in Brazilian sugar exports in 2024 was driven by India’s export restrictions, which began in November 2023,” Argus commented to Reuters. India, the world’s largest sugar consumer and second-largest producer, restricted exports following weather-related crop losses.

“With India out of the export market, Brazil filled the gap, increasing shipments to both India and other markets that previously relied on Indian sugar,” Argus concluded.

Between January and September, Brazil exported 2.2 million tonnes of sugar to India, marking a 72% year-over-year increase, as per data from Argus and the Brazilian government.

The chart below reveals the progress of Brazil’s sugar exports in containers between January 2021 and September 2024. The data is from DataLiner.

Sugar Exports in Containers | Jan 2021 – Sep 2024 | TEUs

Source: DataLiner (click here to request a demo)

Exports to Indonesia reached 2.6 million tonnes, nearly triple the volume shipped during the same period in 2023.

Shipments to the UAE nearly tripled as well, totaling around 2.1 million tonnes compared to 731,800 tonnes in the same period last year. Egypt imported 1.6 million tonnes of Brazilian sugar by September, more than doubling its intake from a year earlier.

Source: Investing.com

Original reporting: https://br.investing.com/news/economy-news/exportacao-de-acucar-do-brasil-ate-outubro-ja-configura-novo-recorde-anual-aponta-secex-1386117

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