Consulting firm Datagro forecasts a 4,8 percent decline in sugar production at major sugar mills in central and southern Brazil for the new season starting in April, Reuters reports.
In the 2024/25 marketing year, sugar production is expected to be 40,45 million tons, compared to 42,5 million tons in the 2023/24 season. This is due to the dry weather, which will reduce sugarcane production by 9,8 percent to 592 million tons. Yields in the region will fall to 78,8 tonnes/ha, down from 88,3 tonnes/ha in the previous season.
While some retailers and manufacturers like BP Bunge BioWhile energia and Sucden predict production of around 40 million tonnes, Asian trader Wilmar believes that despite lower cane production, sugar production could rise to 44 million tonnes due to increased production capacity. Datagro also forecasts ethanol production in the region to reach 30,42 billion liters in the 2024/25 marketing year, down 9,3% from the previous season. A senior Datagro analyst noted that despite lower production in Brazil, global sugar supplies will improve due to the resumption of production in India and Thailand, and forecast a global supply surplus of 1,9 million tonnes in the 2024/25 marketing year, compared with a deficit of 0,88 million tonnes in the 2023/24 marketing year.
Source: Ukragroconsult (Ukraine)