Brazil’s Copersucar, the world’s largest sugar merchant, is optimistic about sugar prices in the mid-term due to dry weather conditions in the world’s leading producer, which are expected to result in reduced production during the 2024/25 season that began in April.
Tomas Manzano, the chief executive, said that prices should rise from current levels close to 19 cents per pound in New York SBc1.
Copersucar, the sugar and ethanol producer, announced a net profit of 281 million reais for the crop year ending March 2024, down by 58% from last year. According to its Wednesday filing, the company attributed this decrease to ethanol’s low price in Brazil, which did not stall, coupled with sugar prices that underwent a drop in December and continue to impact earnings.
Manzano indicated that this year has been unusual for dry weather in Brazil, stunting cane growth and implying that the crop may be of a lower size than expected. Mills in Brazil, he cited, are expected to attach more cane to sugar production as the crop season progresses, even with recent data that indicated a lower sugar mix versus last year.
“Mills will increase sugar production as the cane matures,” he said, anticipating that the industry will shift into high gear in sugar production in the following months.
