USDA lowers Brazil sugar production forecast for 2024/25 due to low cane quality

Published Oct 16, 2024

Tridge summary

The USDA has maintained its forecast for Brazil's 2024/25 sugarcane crushing production at 645 million tons, but reduced its forecast for the Center-South region to 590 million tons due to adverse weather conditions. The sugar production forecast has also been revised downward to 43 million raw tons from 44 million tons due to lower cane quality. The impact of forest fires on sugarcane production is still uncertain, but the direct losses are expected to be small in comparison to Brazil's total sugar production. Despite high world sugar prices, global sugar consumption remains strong and Brazil continues to meet demand, with exports forecasted at 34.5 million raw tons.

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Original content

USDA maintains its forecast for Brazil’s 2024/25 sugarcane crushing production at 645 million tons and revises down its forecast for the country’s Center-South region to 590 million tons from 600 million tons previously (down 1.7%), due to unfavorable weather conditions. The report also revises down Brazil’s sugar production in 2024/25 to 43 million raw tons from 44 million tons previously due to lower cane quality. Of this, 40 million tons are from the Center-South region. In May 2024, the National Institute for Space Research (INPE) recorded 6,324 forest fires in Brazil. In the following month, INPE recorded 12,432 forest fires. The situation worsened in July 2024, when 22,478 fires were recorded. At the height of the drought, August 2024 recorded 68,635 fires and September recorded a total of 110,704. The fires burned large areas of forests, crops and environmental reserves, releasing large amounts of smoke that spread thousands of kilometers and some cities recorded alarming ...

Source: Vinanet