Drop in sugar output from Brazil expected

PanARMENIAN.Net - Sugar output from Brazil, the world's biggest exporter, is expected to fall this year for the first time in five years according to Unica, Brazil's cane industry association.

Unica has revised its earlier forecast downwards and now expects the critical centre-south region to produce around 1m tonnes less than the 33.5m tonnes produced last year.

This forecast was revised following a spell of bad weather across the centre-south region, which hit ageing cane plantations.

The impact on the global market could be dramatic due to the fact that Brazil is the only major grower that sells during the northern hemisphere's summer. Supply concerns have already seen the price of ICE raw sugar rise by 34% to 27.44 cents after falling 43% from February to May.

Antonio de Padua Rodrigues, Unica's technical director, said "The centre-south region is showing a really strong and significant reduction in terms of the quantity of cane produced. But apart from a lower offer of cane, the quality has been badly affected," Procurement Leaders reported.