Sugar production in Brazil is expected to decline by 6% in the 2021/22 season, also mills in the south-central region are expected to produce around 36 million tons, said Czarnikow on Thursday (21). Ana Zancaner, an analyst at Czarnikow, said that mills will still expand sugar production, “it’s just that we expect less cane to be diverted to sugar”. She pointed out to the below average rainfall in the last quarter of 2020 (26%), which may negatively affect Brazil’s cane output for 2020/21, as local sugar production reached 38.4 million tons. Fires caused by dry condition in some regions of the state of São Paulo have also affected cane fields and are causing concerns over yields. Czarnikow projected total cane crushing in Brazil’s center-south region at 580 million tons for 2021/22, compared to 605 million tons in 2020/21. Despite sugar production forecast to decline, the report indicated that mills are expected to grow, with a high level of historical prices of sugar in terms of local currency.
Sources: Reuters / Notícias Agrícolas
*Translated by Ia Niani