New York: Recent rains, in late March and early April, in Brazil’s key sugarcane belt have improved the outlook for the world’s top sugar producer and exporter, according to commodities giant Wilmar.
In a statement, Wilmar, a major player in the global sugar market, said the Centre-South region of Brazil is likely to see its second-highest sugarcane yield in nine years. This comes after concerns about below-average rainfall predicted earlier in the season.
As per the projections of Wilmar, the 2024/25 sugarcane crop in the Centre-South region of Brazil would fall within a range of 620-630 million metric tons. As per this estimate, Wilmar forecasts sugar production to increase by 42.5-44.5 million tons, with a target crop of 43.8 million tons. This set target nearly matches the record production level achieved in the previous season.
The projections of Wilmar are more optimistic than those of other market participants. For example, French sugar trader Sucden expects a lower production in the Centre-South region of Brazil, at around 40 million metric tons, due to earlier concerns about insufficient rainfall.
