Brazil: USDA expects the lowest sugar beet acreage in 15 years

Published Apr 6, 2023

Tridge summary

The article provides an overview of the sugar beet processing market for the 2023-24 crop, highlighting the dynamics of pricing, sales, and planting intentions against the backdrop of changing weather conditions and competition for farmland. It notes that while most deals are in place, with sales estimated above 80% of potential production, some buyers and processors have yet to secure all their requirements due to high prices and concerns about availability. The USDA's report on reduced sugar beet planting and potential impact on crop supplies, alongside concerns for planting delays due to cold and wet weather, is balanced by the positive effect of strong sugar prices on grower cooperatives and the sugar market. Additionally, the article touches on the status of refined cane sugar offers for 2024 and the resilience of the corn sweetener markets, despite challenges like limited supply and slow sales, underscoring the adaptability and resilience of the industry in the face of fluctuating market conditions.

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

Original content

While the majority of deals for the 2023-24 crop have been closed, some sellers noted that some large buyers were not yet fully covered, and some processors still had deals ongoing but not yet completed. Some buyers backed off as prices soared on the selloff run over the last three or four weeks in one of the busiest contracting periods in memory. Most sugar beet processors have pulled back in recent weeks to reassess their potential supply of sugar from the yet-to-be-planted 2023 crop. Most of them have returned to the market and are selling at least selectively. Others continued to sell sugar without a break, but at higher prices, which also contributed to a slowdown in sales. Indications were that beet sugar sales were above 80% of prospective production for the 2023-24 crop year, with some processors likely approaching 90% sold. Some sugar beet processors were limiting sales to a smaller percentage of prospective production than in previous years to ensure they have adequate ...

Source: Portal Do Agronegocio