Sugarcane supply crunch in Brazil is about to decrease 10.6% when compared to the previous cycle, totaling 541 million tons. Sugar output is also expected to decline about 10.1%, as well as Ethanol production could decline 10.4%. “Due to the water deficit in the Center-South region since last year, and for the frosts in early July, sugarcane productivity has been in decline, reaching 71.5 tons per hectare this season, a drop of 7.9% compared to the previous year”, said the market analyst, Rafaela Souza. According to her, this scenario should affect the global sugar supply in the 2021/22 cycle. “Last estimates have shown a surplus of 1.7 million tons, now we can see a deficit of 1 million tons, which means that crop failure in the Center-South could significantly impact the market. In other words, the supply-demand balance will remain tight for sugar”, she said.
Source: Canal Rural (*Translated by Ia Niani)