STONEX SEES SURPLUS IN THE GLOBAL SUGAR MARKET, WITH BRAZIL OFFERING ALMOST 50 MILLION TONS.

StoneX predicts a global sugar surplus of 3.4 million tons in the 2023/24 season, fueled by Brazil’s record production nearing 50 million tons. Despite production challenges globally, Brazil’s Center-South region anticipates high agricultural yields and investments in crystallization, compensating for losses elsewhere. Asia’s sugar supply faces constraints due to below-average monsoon rains in India and Thailand. This surplus follows a slight surplus of 0.73 million tons in the previous cycle, marking a shift from consecutive deficit years. Brazilian production is expected to grow substantially, with the Center-South projected to produce approximately 46.2 million tons, while the North-Northeast remains stable. The surge results from record productivity and a focus on sugar over ethanol production.
Source: Nova Cana