Falling production does not prevent sugar devaluation on the international market

Sugar futures contracts closed Thursday (12) with a drop in international markets, despite the significant reduction in Brazilian production recorded in the second half of November. According to data released by the Sugarcane and Bioenergy Industry Union (Unica), production fell 23% in the period. Milling at mills in the Center-South of Brazil also fell 15% compared to the previous harvest, totaling 20.35 million tons processed. Sugar production totaled 1.08 million tons. Even so, the results exceeded market expectations, which predicted, according to S&P Global Commodity Insights, a milling of 15.48 million tons and production of 793.5 thousand tons of sugar. "The rains had a major impact on the harvest pace in early November and several production units postponed the end of operations until the end of the month," explained Luciano Rodrigues, Unica's Director of Sector Intelligence. He highlighted that, in the second half of November, milling increased by 45% in São Paulo and ...