With a few weeks to go in the 2020/21 (April-March) sugar production year, the National Supply Company (Conab) estimates Brazil to set a record for sugar production (41.84 million tons – up 40% over 2019/20), and sugar exports. According to data from the Secretariat of Foreign Trade (Secex), even before the end of the harvest, Brazil has already set a record by exporting 28.43 million tons between April 2020 and January 2021, over 18.95 million tons exported last season. “This positive scenario had been expected by the market before, as it as the reducing demand for ethanol in the first half of 2020, due to the pandemic, caused the mills to increase sugar production, making sugar reach high international prices”, says Fábio Silva Costa from Conab. Average sugar price on NYSE increased by 8.5% in January compared to the previous month. These prices have not been observed since 2017 . Prospects for the 2021/22 sugar production year are also looking positive. “We have positive chances and a favorable exchange rate for exports. This should continue to keep exports high” says Costa.
Source: Notícias Agrícolas
*Translated by Ia Niani