The forecast for the 2022/2023 sugar season in Brazil is moderate when compared to 2021, despite the bet on high domestic and international prices. According to Cepea (Center for Advanced Studies in Applied Economics), from Esalq/USP, the level of prices seems to be related to some factors, such as the increase in the domestic and international freight costs. “The projections for the 2022/23 crushing sugar season in the Center-South region vary between 520 million tons and 578 million tons of sugarcane. Even in an optimistic scenario, the raw material output may not reach the full production capacity in Brazilian regions, which will certainly limit the volume of sugar”. According to the research, the production mix of mills in the Center-South region is likely to remain slightly more ethanol for the next season, similar to the current 2021/22 season, around 55% for ethanol and 45% for sugar.
Source: Jornal Cana (*Translated by Ia Niani)