Weather conditions challenge sugarcane production in Brazil and impact global prices

The managing director of Paragon Global Markets, Michael McDougall, reports that heavy rainfall in the Central-South region has hampered sugarcane cutting operations at some mills. Furthermore, adverse weather has also impacted ship loading, which is normally carried out in the open air. These challenges put the efficiency of the Port of Santos at risk, contributing to the formation of long queues of ships, with waits of up to 40 days for sugar loading. The price of sugar has already experienced an increase of almost 2% throughout this week, reaching US$0.2775 per pound this Tuesday. In Europe, the situation is no different, with flooded fields delaying the beet harvest, threatening to cause a significant loss of approximately 15% of the French crop, one of the largest producers in the region. These setbacks in Europe come at a time when global supply is already facing constraints, and India, the second largest sugar producer after Brazil, is ...