Climate stabilizes, La Niña weakens, and sugar prices strengthens in Brazil

Published Mar 1, 2023

Tridge summary

The article, featured in Itaú BBA's Agro Mensal newsletter, discusses the weather forecast. It anticipates continued rainfall in various regions of Brazil, including MG, ES, MT, RO, TO, MS, and Paraguay, for the early days of March. This comes as the La Niña phenomenon weakens, leading to a climate neutral period. The report also touches on the impact of the weakening Indian sugar harvest estimate on global sugar prices, noting an increase in prices in New York. Additionally, it mentions a revenue drop of 6.4% for the machinery industry at the start of the year. Furthermore, it discusses the implications of the return of federal taxes on fuels in Brazil, which could potentially favor distributors.

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

Original content

The expressive rainfall volumes recorded in the last 30 days should remain in the first week of March. The La Niña phenomenon loses strength giving way to a period of climate neutrality. This forecast is recorded in the Agro Mensal newsletter published by Itaú BBA. “The map shows the return of rains in MG, mainly in the south of the state, as well as in ES, in most of MT, RO and TO. In the south of the MS it should continue to rain a lot and mainly in Paraguay, while in the South Region the volumes will decrease”, points out the report. With regard to sugar prices, the document assesses that the reduction in the estimate for the Indian harvest has strengthened the prices of the product in New York. “Prices strengthened in late January and early February. The March/23 price ended the first half of the current month at cUSD 21.36/lp (2/15), up 8.3% compared to the last 30 days (1/15). The appreciation of prices happened after the reduction of the estimate of sugar production of the ...

Source: Jornalcana