Brazilian sugarcane harvest drives a fall in global sugar prices

Sugar futures contracts began the week falling on the main international exchanges, driven by estimates of a robust sugarcane harvest in the Center-South of Brazil, which should exceed 605 million tons. Analysts note that sugarcane production in this region, to date, is the second largest on record, but the market trend will depend on the speed with which production adjusts in relation to the 2023 record. According to the Sugarcane and Bioenergy Industry Union (Unica), the accumulated crushing in the harvest has already reached 539 million tons until October 15, representing an increase of 2% compared to the same period of the previous harvest. However, according to an analysis by the consultancy Green Pool, the pace of completion of the crushing is not sufficient to sustain a harvest of less than 600 million metric tons, maintaining the projection of 605 million tons. In addition, the global sugar market has been influenced by news of an increase in ethanol production in India, ...