CONAB POINTS TO “OPTIMISTIC EXPECTATIONS” FOR SUGAR AND GROWTH IN ADVANCE SALES

Market conditions should guarantee the profitability of sugar cane producers for the 2021/22 harvest, as the external scenario is stable when compared to the previous period. This is what indicates the monthly conjuncture of the product released on April 19, by the National Supply Company (Conab). According to the analyst Fábio Costa, if at the beginning of the pandemic the devaluation of oil influenced the fall in international prices between March and April 2020, the following months were marked by the recovery of prices, due to the limitation of the global stocks of the 2020 harvest / 21. The trend can be maintained for this crop, he points out. According to the analysis, the perspective is that exports continue to increase, which should support domestic prices. The conjuncture of the high exchange rate, combined with attractive international prices, contributed to an export of approximately 32.2 million tons of sugar in the 2020/21 harvest, which represents an increase of 69.8% in comparison with the same cultivation period in 2019/20. “The 2021/22 harvest begins in Brazil with a very optimistic expectation for sugar exports, based on market information that indicates a strong growth in the anticipated sale of production in the future market,” says Costa.

Source: Nova Cana