BRAZILIAN SUGAR PRODUCTION MAY SURGE 32% IN 2020/2021 HARVEST, SAYS CONAB

Brazil’s total sugar production in the 2020-21 season is expected to grow 32% and reach 39.33 million tons, said Conab (Brazil’s food supply agency) on Thursday. Conab projected total sugarcane crush of 642 million tons, 0.1% smaller than last year, but higher than the estimated 630.7 million tons in May. The agency said that the large Brazilian output has so far found destination, with exports rising 70% in the first four months of the crop (April-July) compared to the same period in 2019. “We expect exports remain high”, said Conab showing data from the Foreign Trade Secretariat (Secex). Conab also said that the boost comes from the limited supplies from Asian producers due to climatic adversities and from the high exchange rate. Dollar prices on exports from April to July were 63% higher, reaching an average increase of 127%, said Conab according to Secex once again. In the first half of the year, restrictions to movement against coronavirus resulted in low ethanol consumption in national market and it helped Brazil sugar supply, as mills allocate more raw material for sugar production, added the agency.

Source: G1 / Portos e Navios