The Center-South region of Brazil is expected to have greater sugar availability in the 2025/26 season, with a sugarcane harvest of 630 million tons, a 2% increase from 2024/25. Favorable rainfall and improved soil moisture have supported this growth, though past crop damage may limit full recovery. Mills are likely to prioritize sugar over ethanol production due to higher sugar premiums, despite a 2% rise in biofuel demand. Sugar production is projected to reach 51%. Weather conditions are expected to remain neutral, with no strong El Niño or La Niña impacts. Some mills may delay crushing to allow for better crop development. Globally, India’s reduced sugar exports and rising domestic prices could affect market dynamics, potentially keeping prices above 19c/lb if Brazil’s supply doesn’t meet demand quickly.
Source: RPA News