BRAZIL SHOULD HAVE A NEW SUGAR PRODUCTION RECORD EVEN WITH LOWER CRUSHING IN 24/25

The first estimate for Brazil’s 2024/25 sugarcane harvest by Conab suggests a 3.8% reduction to 685.86 million tons, attributed to low rainfall and high temperatures in the Center-South region, causing productivity losses. The Southeast, the primary producing area, anticipates a 5.6% decrease, notably in São Paulo. The Central-West forecasts 145.69 million tons. Despite reduced harvest, sugar production is estimated to rise to 46.29 million tons, while ethanol production, including corn, is expected to decrease by 4%. Despite challenges, stable market supply is expected due to high inventories. India’s production decline could benefit Brazilian sugar exports, while ethanol faces competitive pricing. Conab will provide further updates throughout the harvest year.
Source: Nova Cana