Sugarcane crop in Brazil may be lower than expected, says Wilmar

Published 2021년 7월 20일

Tridge summary

Singapore-based trading company, Wilmar International, has forecasted a significant decrease in Brazil's sugarcane production for the 2021/22 harvest due to ongoing droughts and record rainfall deficits in the Center-South region. The production is projected to drop by nearly 100 million tons to 510 million tons, marking the smallest harvest in a decade and potentially falling further. This scenario is contributing to a global sugar deficit and driving raw sugar futures to their highest level in four years. The reduction in sugar production may result in some mills closing as early as October, with a possible drop in productivity even beyond the current season.

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

Original content

The water crisis has worsened the prospects for the sugarcane crop in Brazil, according to trading company Wilmar International. With the impact of the drought, sugarcane production in the Center-South region is expected to fall by almost 100 million tons in the 2021/22 harvest compared to the previous year, to 510 million tons in the 2021-22 season, estimates Wilmar, headquartered in Singapore. In April, the forecast was 530 million tons. The new volume would be the smallest in a decade, and there is a chance of falling further. “We've never seen such crop conditions, with a record rainfall deficit month after month,” said Karim Salamon, head of sugar market analysis at Wilmar, via email. “There is no reference to such a drought in the Center-South of Brazil for such a long period. This never happened." Droughts and frosts in the world's largest sugar exporter contributed to a global sugar deficit, helping to push raw sugar futures to the highest level in four years earlier this ...

Source: NoticiasAgricolas