Conab projects record sugar production in Brazil in 2024-25 season
Brazil’s upcoming sugarcane crop is poised to nearly match last year’s record, with Conab forecasting a slight 3.8% dip to 685.86 million metric tons. Despite lower yields due to weather woes, increased planting is set to propel sugar production to an all-time high. The USDA’s gloomier outlook saw sugar prices tumble in New York by 3%. Conab predicts a record sugar output of 46.29 million tons, while ethanol production is expected to dip by 4%, except for a 16% boost in corn-based ethanol.
Sao Paulo: Brazil’s upcoming sugarcane crop would be only slightly smaller than the previous record, according to the government agency Conab.
Despite lower agricultural yields, sugar production is anticipated to reach an all-time high, thanks to increased planting that offsets the yield decline.
Conab predicts that Brazil’s total sugarcane crop for the 2024/25 season (April-March) will be 685.86 million metric tons, which is 3.8% less than the previous season. The decrease in total cane volume is less than the anticipated 7.6% decline in agricultural yields due to below-average rainfall and excessive heat. This is due to a 4.1% increase in planted area, reaching 8.67 million hectares.
“Some were surprised by Conab’s increase in planted area, as other sources like the USDA expect a much smaller expansion,” said a U.S.-based sugar trader.
The USDA projected a larger decline of 8.5% for Brazil’s sugarcane crop, estimating a planted area increase of only 1.3%. Following Conab’s report, sugar prices in New York fell by as much as 3%.
Conab forecasts sugar output in Brazil to reach a record 46.29 million tons in the new season, a 1.3% increase from the previous cycle, which was also a record. Ethanol production, both sugar and corn-based, is expected to decrease by 4% to 34.18 billion litres. The decrease is primarily attributed to mills allocating more cane to sugar and less to ethanol. However, corn-based ethanol production is projected to grow by 16%.
Source Link : https://www.chinimandi.com/sugar-production-in-2024-25-season-expected-to-reach-an-all-time-high-conab/
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