BRAZIL ACCOUNTS FOR 25.4% OF SUGAR PRODUCTION AND 25.8% OF DEMAND IN 2023-24

In January, the NY#11 contract saw an increase of over 300 points, going past US¢23.00/lb. However, in December of 2023, there was a drop of over 20%, caused by high Brazilian production and exports, as well as the review of the Indian ethanol supply policy. StoneX expects a tightening in sugar trading during the first quarter due to Asian crops being below historical averages. Seasonal rains will reduce Brazil’s sugar production until March. Brazil leads the world in sugar output with 25.4%, while Asian production has been hampered by rains in India and Thailand. StoneX predicts a 3.4-million-ton sugar surplus in 2023-24, which will be boosted by ending stockpiles.
Source: Jornal Cana (*Translated by Ia Niani)