Rio De Janeiro: Safras & Mercado, a consultancy, has revised its estimate for the sugarcane processing in Brazil’s center-south region for the 2024-25 season (April-March) to 650 million metric tons.
This reflects a reduction of 10 million tons from its earlier forecast in January, primarily due to inadequate rainfall. This marks the second downward revision by the consultancy, with the initial estimate in December 2023 indicating a total volume of 670 million tons.
Mauricio Muruci, Safras’ sugar analyst, noted that rainfall in the center-south region has been consistently below average, ranging between 13% and 17% below normal since December 2023. Despite the decrease in sugarcane volume, sugar production in the center-south is anticipated to increase to 42 million tons, up from 41 million tons in the previous season.
The consultant highlighted that the combination of elevated prices in the international market and substantial hedging of future harvests will incentivize mills to focus on sugar production. This strategic approach aims to fulfill export contracts, reinforcing the resilience of the industry in adapting to evolving market dynamics.
