Brazil to produce 2 mln tons less sugar due to drought, wildfires – BMI
LONDON, Sept 27 (Reuters) -Top sugar grower Brazil will produce 2 million tons less sugar in the 2024/25 season due to severe drought and related incidences of wildfires, BMI, a unit of Fitch Solutions, said in a report.
Brazil, which accounts for about 70% of the global sugar export trade, is experiencing one of its worst droughts on record. World sugar prices SBc1 have risen to seven-month peaks as a result.
BMI said at least 2.4% of the sugarcane area in Brazil has fallen victim to wildfires because of the persistent drought and heat.
The analyst has, as a result, lowered its Brazil sugar output forecast for 2024/25 by 2 million tons to 39 million and reduced its global sugar surplus figure for the period by 2 million tons to just 1.9 million.
“We expect tight global supplies to continue to support prices, noting the continued challenges in Brazil as a potential upward risk for prices,” said the analyst, adding it will likely be raising is 2024 and 2025 price forecasts soon.
Sugar is used in a wide variety of foods and rising prices of the food staple are a worry for policymakers battling inflation.
LONDON, Sept 27 (Reuters) -Top sugar grower Brazil will produce 2 million tons less sugar in the 2024/25 season due to severe drought and related incidences of wildfires, BMI, a unit of Fitch Solutions, said in a report.
Brazil, which accounts for about 70% of the global sugar export trade, is experiencing one of its worst droughts on record. World sugar prices SBc1 have risen to seven-month peaks as a result.
BMI said at least 2.4% of the sugarcane area in Brazil has fallen victim to wildfires because of the persistent drought and heat.
The analyst has, as a result, lowered its Brazil sugar output forecast for 2024/25 by 2 million tons to 39 million and reduced its global sugar surplus figure for the period by 2 million tons to just 1.9 million.
“We expect tight global supplies to continue to support prices, noting the continued challenges in Brazil as a potential upward risk for prices,” said the analyst, adding it will likely be raising is 2024 and 2025 price forecasts soon.
Sugar is used in a wide variety of foods and rising prices of the food staple are a worry for policymakers battling inflation.
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