Sugar: Find out how La Niña will impact production in the global market

Published Jun 6, 2024

Tridge summary

A report by Hedgepoint Global Markets discusses the potential impacts of the anticipated more intense La Niña phenomenon, expected starting from the third quarter, on the agricultural commodities market, with a focus on the sugar-energy sector and the sugarcane and sugar beet crops. The report highlights that while lower rainfall and higher temperatures caused by La Niña can be beneficial for the sugarcane harvest, they also increase the risk of fires and frosts, which could lead to lower yields and an accelerated crushing rate. The report also notes that extreme weather conditions, such as droughts and harsh winters, can affect the productivity of these crops. Furthermore, the report discusses the potential effects of La Niña on sugar production in various regions, including Brazil, India, and Thailand, and the potential impact on the hurricane season in the region.

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

Original content

In Brazil, the phenomenon tends to benefit the sugarcane harvest, due to the low level of rainfall and higher temperature. However, it also increases the risk of fires and frosts. A more intense La Niña from 3Q onwards could also raise concerns regarding the development of the 25/26 harvest. The agricultural commodities market is strictly linked to weather patterns, such as La Niña and El Niño, due to their impact on product supply. Depending on the state of development of the crop in question, these climatic phenomena can either benefit or harm the yield of the agricultural product. The topic is covered in a report by Hedgepoint Global Markets. “In fact, in our latest reports we have already mentioned some of the impacts that could be brought about by the transition from the El Niño phenomenon to La Niña. Therefore, in this report our objective is to delve a little deeper into the possible scenarios and risks for the sugar-energy sector with this climate change”, says Laleska ...

Source: Portal Do Agronegocio