Conab raises estimate for Brazil’s 2024/2025 sugarcane crop
Brazil’s crop agency Conab raised its 2024/25 sugarcane crop forecast to 689.83 million metric tons, up from 685.86 million in April but below last season’s 713.21 million tons. Improved conditions in northeastern Brazil boosted prospects, but low rainfall and high temperatures in the center-south region are expected to reduce yields by 6.6%. Sugar output is projected at a record 46 million tons, while sugar and corn-based ethanol production is forecasted at 35.41 billion liters.
AO PAULO, Aug 22 (Reuters) -Brazil’s national crop agency Conab on Thursday increased its forecast for the country’s 2024/25 sugarcane crop but said production would still fall short of the previous season as low rainfall and high temperatures reduced yields in key areas.
Sugarcane output in the South American country is now seenat 689.83 million metric tons this season, the agency said, above the 685.86 million tons it estimated in April but still below the 713.21 million tons reaped in 2023/24.
The figure was revised up from Conab’s previous estimate due to improved climate conditions in northeastern Brazil, which enabled good crop development in the area.
However, in the key center-south region – Brazil’s main sugarcane belt – “low rainfall levels combined with high temperatures should reduce the output when compared to the previous crop,” Conab said in a statement.
Agricultural yields for sugarcane in the country are expected to decline 6.6% in 2024/25 from the previous season, a slower pace than the 7.6% initially estimated by Conab. The harvesting area is seen up 3.5% from the previous cycle.
Sugar output in Brazil, the world’s largest producer and exporter of the sweetener, was projected at a record 46 million tons this season, 0.7% more than in 2023/24 but down from the 46.29 million tons previously estimated by Conab.
Production of both sugar and corn-based ethanol should total 35.41 billion liters, according to Conab, above the 34.18 billion liters projected in April.
Source Link : https://www.xm.com/research/markets/allNews/reuters/conab-raises-estimate-for-brazils-20242025-sugarcane-crop-53910711
