Brazil: Sugar production is expected to exceed 43 million tons in the 2024/25 harvest

Published Feb 15, 2024

Tridge summary

Sugar production in Brazil's Center-South region and Pernambuco is expected to increase in the 2024/25 harvest, potentially surpassing previous records, despite a possible 3% drop in sugarcane production. Over 50% of the cane is expected to be used for sugar manufacturing, influenced by factors such as Brent oil prices, the value of the dollar, and changes in US oil embargoes. However, cheaper oil and a stable Real could reduce ethanol's competitiveness, favoring sugar. In Paraíba, despite uneven rainfall, positive sugarcane field development and sweetener plant expansion are boosting sugar production. However, the El Niño weather phenomenon may affect the season with low precipitation in the northeast until April. India's difficulties in producing sugar cane due to below-average rainfall could also impact the global sugar supply.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Sugar production may increase in the next harvest (2024/25) in the Center-South region of Brazil and even surpass the record of the current 2023/24 season, according to a monthly report released by Cepea. According to the Sugarcane and Bioenergy Industry Union (UNICA), in the current harvest (from April/23 to January 16/24), the Center-South produced 42.099 million tons of sugar, and the crushing of sugarcane totaled 645.376 million tons. For 2024/25, sector estimates indicate that sugar production in the Brazilian region could exceed 43 million tons and sugar cane production could be between 625 and 640 million tons. Even in the face of a possible 3% drop in sugarcane production, the largest volume of sweetener in the next harvest should come from the more sugary mix – it is estimated that more than 50% of the cane will be destined for sugar manufacturing. READ MORE > Inpasa announces investment of over R$1 billion in the ethanol industry in MS Some factors in the macroeconomic ...
Source: Jornalcana
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