French food group Tereos estimates that the Brazilian operation will crush 10% less sugarcane in the 2020/2021 season due to drier-than-normal weather, however the entity sees sugar at prices higher than the average, and an upward trend in the sweetener market due to weather problems. Tereos’ CEO in Brazil, Pierre Santoul, said the Brazilian sugarcane crop failure “has not yet been completely priced by the global market”, and there is room for sugar prices to go even higher. Raw sugar prices traded on the ICEM exchange were on July 1 at around $18.40 cents per pound, fluctuating near the highest levels since 2017 on a continuous chart. Frosts in Brazil’a Center-South are seen adding to the drought losses. Santoul believes the result will offset the 10% drop in production expected for the current cycle, not least because the company set sales at values 13% higher than the average last year.
Sources: Reuters/Nova Cana (*Translated by Ia Niani)