Brazil will again be the biggest sugar producer in 2023/24, says Czarnikow

Published 2023년 1월 30일

Tridge summary

Czarnikow, a UK trading company, forecasts that the Center-South of Brazil will become the world's largest sugar producer in the 2023/24 harvest, expected to produce 36.3 million tons, surpassing India's production of 35.5 million tons. This comeback is attributed to improved sugar profits over ethanol and better agricultural productivity due to favorable rainfall. However, the forecast faces challenges, including logistical difficulties in sugar exportation from Brazil, despite its efficient sugar terminals in the Center-South, which could limit exports to about 2.6 million tons per month. The article underscores the importance of monitoring logistics in the region to ensure smooth shipping of the large sugar production.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Czarnikow, a British food and services trading company, believes that the Center-South of Brazil will produce 36.3 million tons of sugar in the 2023/24 harvest, while India should produce 35.5 million tons. If the projection is confirmed, Brazil will once again take the title of the world's largest sugar producer, which was held by the Indian country in the last two years. According to Ana Zancaner, consultant at the trading company, contrary to the past harvest, sugar should continue to offer better returns than ethanol when the harvest begins in April. “In 2022, ethanol prices stayed above/close to sugar until mid-June. Consequently, mills prioritized ethanol production over food for the first time since 2019. In 2023, we expect mills to prioritize sugar, which means that 2.2 million tons more sugar should be produced in Q2' 23 compared to 2Q'22”, he explains. READ MORE > Sugar curve reflects expected surplus The analyst also states that they believe there will be more sugarcane ...

Source: Jornalcana