StoneX sees global sugar deficit in 2021/22 and surplus in later campaign

Published Nov 29, 2022

Tridge summary

The world sugar market for the 2021/22 campaign saw a deficit of 1.2 million tons, a reversal from the forecasted surplus of 300,000 tons, due to production challenges in Brazil's sugarcane belt from August to September. Heavy rainfall impacted harvesting, leading to lower production figures and causing delays in sugar availability for the next campaign. Despite these challenges, the deficit is expected to have a positive impact on the 2022/23 campaign, which is projected to have a surplus of 5.2 million tons, up from the previous forecast of 3.9 million tons. The increased surplus is attributed to Brazil's damaged harvest pushing back sugar availability and anticipated productivity increases in 2023/24.

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

Original content

SAO PAULO, Nov 29 (Reuters) - The world sugar market in the 2021/22 campaign (October/September) closed with a deficit of 1.2 million tons, reversing expectations of a surplus of 300,000 tons from the forecast September, according to a survey by consulting firm StoneX. "The correction made comes directly from the impact of the center-south region (of Brazil) on production, since the other players had already finished their harvests or ended up closing within StoneX's estimates," the consultant said. The analysis company explained that August and September (the last two months of the season) saw above-normal rainfall in the Brazilian sugarcane belt, making harvesting difficult. "With this, the figures brought by the Union of Sugar Cane and Bioenergy Mills (Unica) were below the previous monthly estimates, and below what the market expected, accumulating (in these four fortnights) a drop of the production of more than 1.0 million tons, given the milling below expectations". However, ...

Source: Elperiodicodemexico