Brazil: Head of Alvean says the market is not paying attention to problem in sugar stocks and highlights low volume for export in early 2025

Published 2024년 11월 19일

Tridge summary

Júlio Adorno, the head of Alvean Brasil, expressed concerns about the misperception of sugar availability in early 2025 and the disalignment of future prices with fundamentals during a speech at SCA Brasil. He outlined a decrease in Brazil's sugarcane planting area due to dry weather, which is expected to result in a reduction in sugar production. Despite these challenges, Brazil continues to export a significant amount of sugar, hiding the true state of the market. Teresa Carey, a consultant, warns of potential price increases due to various factors, including adverse weather, harvest size, geopolitical tensions, and market dynamics, while also highlighting the risks of recession and currency devaluation that could lead to a market downturn.

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

Original content

Júlio Adorno, head of Alvean Brasil, stated in a broadcast held by SCA Brasil this Tuesday (19) that the market has a wrong impression regarding the availability of sugar in early 2025. In addition, he stressed that future prices are not 100% in line with fundamentals. During his speech, Adorno first highlighted that Alvean has a milling perspective in Brazil of 610 million tons of sugarcane in the 2024/25 harvest, while in 2023/24 this number was 654 million tons. For 2025/26, with a smaller area due to the renewal of sugarcane fields that suffered greatly from the dry weather this year, a new decrease is expected, with a total projected at 594 million tons, a number considered optimistic. With this sugarcane profile, Adorno states that sugar production in the Center-South of Brazil is expected to reach 39.5 million tons in the 2024/25 harvest, still with a downward bias depending on the weather in Brazil and the decisions made by the mills. This number is lower than the 42.4 ...

Source: NoticiasAgricolas