Brazil’s new sugarcane crop seen almost 4% down — Conab

It is reported by Reuters.

Conab projected Brazil’s 2024/25 (April-March) total sugarcane crop at 685.86 million metric tons, 3.8% less than in 2023/24.

The fall in total cane volume is smaller than the expected decline of 7.6% in agricultural yields due to below-average rains and excessive heat. That is a result of a 4.1% increase in planted area to 8.67 million hectares.

«Conab surprised the market with that area increase. Others such as USDA see a much smaller expansion», — said a U.S.-based sugar trader.

The USDA projected last week a larger fall for the Brazilian sugarcane crop at 8.5%, estimating a planted area increase of only 1.3%.

Sugar prices in New York SBc1 fell as much as 3% after Conab’s report.

Sugar output in Brazil, the world’s largest producer and exporter of the sweetener, was projected by Conab at a record 46.29 million tons in the new season, or 1.3% above the previous cycle, which also was the previous record.

Production of ethanol, both sugar and corn-based, should fall 4% to 34.18 billion liters. Accounting only the sugar-based biofuel, output is seen decreasing by 8% as mills allocate an increasing amount of cane to sugar and less to ethanol.

Production of corn-base ethanol, however, is seen growing by 16%.