Sugar production in Brazil’s central-south region reached 1.08 million metric tonnes in the second half of November, according to industry group UNICA, marking a 23 per cent drop compared to the same period last year, but still surpassing market expectations.
During this time, sugarcane crushing fell by 15.2%, totaling 20.35 million tonnes, UNICA reported.
Although both figures showed a year-on-year decline, they exceeded analyst forecasts. Following the release of the data, raw sugar prices dropped.
Analysts surveyed by S&P Global Commodity Insights had predicted sugar production to be around 793,500 tonnes for the period, with cane crushing expected to reach just 15.48 million tonnes.
UNICA explained that rainfall earlier in the month caused mills to delay crushing, shifting more activity to the second half of November and contributing to stronger results during this period.
March NY world sugar #11 (SBH25) Thursday closed down -0.39 (-1.83%), and March London ICE white sugar #5 (SWH25) closed down -7.80 (-1.44%).
Sugar prices Thursday settled moderately lower, with NY sugar falling to a 1-1/2 week low and London sugar sliding to a 1-month low.
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