Brazilian Sugar


Even with expectations of a decrease of petrol prices, which might reduce the competitiveness of Brazilian ethanol, perspectives are positive, mainly for sugar. From the middle of the second semester onwards, the world exceeding might become deficit, which would be supplied by the Brazilian commodity. The valuated dollar against real may also reinforce the advantage of the Brazilian product in the international scenario. Besides, global sugar market data already predict a record in the world consumption in the next year. Released in November by the USDA, there is a projection of a 2.22% increase in the global sugar consumption, to 170.996 million tons, a record. The Organization estimated that the surplus would total 1.306 million tons. The Organization estimates that, after five crops of sugar surplus, there might be a deficit of the production from 2 to 2.5 million tons. In Russia, this season's sugar production might be reduced by 1 million tons due to climate troubles that hit the major beet producing regions, according to data from industries and Ikar. China, on the other hand, might increase its imports, given that the Chinese government might announce new policies to pay cane suppliers, leading these players to change to other activities, reducing the sugar production. Brazilian Sugarcane Industry Association (Unica) estimates that mills in the Central-South region might process from 541.4 to 561.6 million tons of sugarcane in the season - last crop totalized 567 million tons.

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