The world’s largest sugarcane processor, Raízen, anticipates flat cane crushing volumes for the 2024-25 season despite less ideal weather conditions. This stability is attributed to extensive agricultural improvements that aim to maintain yield.
The company’s profit for the previous season (2023-24) fell short of expectations due to lower tax credits and ethanol prices. Raízen’s stock price also dipped slightly.
Raízen’s ethanol and sugar stockpiles grew significantly at the end of the 2023-24 season. The company strategically delayed ethanol sales to benefit from potentially higher prices later in the year. Sugar stockpiles increased due to their “market allocation strategy.”
Raízen CEO Ricardo Mussa is optimistic about sugar prices despite a recent decline in futures. He cites a historically low global sugar supply-to-demand ratio and Brazil’s crucial role as a supplier, even with an expected production decrease this season.
