Brazil is expected to produce bumper sugar again this year, which might keep prices low for long. This is good news for buyers who have had trouble getting enough sugar in the past, reported BNN Bloomberg.
According to traders and analysts that gathered during New York Sugar Week, Brazil, the biggest sugar exporter, is set to harvest its second-largest crop ever. This is because of good weather and more sugarcane being grown. Millers are also turning a record amount of cane into sugar this year, at the expense of ethanol.
In the upcoming months, the anticipated increase in exports from Brazil is poised to ease supply worries, following consecutive deficits that have driven prices up for five consecutive years. This surge in exports will also offer respite, especially considering that major importing nations in Asia and the Middle East continue to face constraints in their inventory.
“Many traders were mistaken in their earlier predictions,” remarked Marcelo de Andrade, managing director of soft commodities at Cofco International Ltd., reflecting on the unexpected volume of Brazil’s exports.
The discussions held during this week’s meetings in New York showed revised estimates indicating higher sugar production in Brazil compared to previous forecasts. It is anticipated that Brazil’s primary cane-growing region, the Center South, will yield between 41 million and 42.5 million tons, nearing a record high.
