MORE SUGARCANE, MORE SUGAR: HEDGEPOINT’S HIGHLIGHTS FROM CENTER-SOUTH CROP REVIEW

Raw sugar prices surged 65 points in July, buoyed by tariff discussions, increased demand from China, and the possibility of Coca-Cola using the product in the United States. Despite a slow start to the 25-26 harvest in the Center-South, crushing picked up in July, and assessments show possibility for recovery, with TCH anticipated at 76 t/ha and around 605 Mt of processed sugarcane. However, the ATR remains lower than in recent harvests, restricting sugar and ethanol output. The sugar mix, which has been breaking records, is expected to reach 52% due to appealing prices, which may tighten ethanol stockpiles and sustain sweetener prices. Sugar production was updated to 40.9 Mt, with exports at 31.9 Mt, in line with the previous crop and sustaining worldwide prices over 16 cents per pound.
Source: Jornal Cana (*Translated by Ia Niani)