In Brazil, during the 2023/24 season in São Paulo, the average prices of white crystal sugar in the spot market were higher than in the 2022/23 season, reaching a peak of USD 33.46 per 50-kilogram (kg) bag on October 15, 2023. This price surge was driven by increased sugar exports, with Brazil exporting 27.536 million metric tons (mmt) of sugar from Jan-23 to Nov-23, marking a 9.92% year-on-year (YoY) increase. Significant production drops in major regions influenced the global sugar market, with India experiencing a 13.23% YoY production decline and the European Union (EU) witnessing an 11.26% YoY reduction in the 2022/23 season. Despite the export surge, the São Paulo spot market saw a decline in domestic demand throughout the season, potentially due to lower product availability and shifts in consumer preferences.
In the first half of December during the 2023/24 harvest, sugarcane crushing in the center-south of Brazil saw a remarkable surge of 244.29%, reaching 19.08 mmt compared to 5.54 mmt in the same period last year. The number of operational units also significantly increased to 184, compared to 85 in the previous year. Sugar production experienced a substantial surge, totaling 924.66 thousand metric tons (mt), indicating an impressive year-on-year (YoY) increase of 205.39%. However, the sugar quality is not satisfied, with the total recoverable sugars (ATR) levels decreased by 18.80% YoY, dropping to 117.15 kg/mt from 144.27 kg/mt in the 2022/23 harvest.