Forecast of world sugar production in 2024/25 MY will affect the world sugar balance

According to international analysts Datagro and Louis Dreyfus, the projected increase in sugar production in the season 2024/25 MY may be one of the reasons for the surplus of the world sugar balance in the new season.

This is reported by ChiniMandi.

According to the companies, the expected volume of sugar production in Thailand in the season 2024/25 is estimated at 10.5 million tons, which is 20% more than in the previous season. The increase in world production will also be affected by the expected growth in production in Brazil (+1.3%) and the EU (+5%).

Analysts explain the increase in world sugar production by increasing the area under sugar cane due to the reduction of grain in Brazil and in Thailand due to the reduction of cassava.

The analysts’ forecasted surplus of the world sugar balance in 2024/25 MY from 0.8 to 1.6 mln tonnes may be revised later this summer. The reason may be the impact of unfavorable weather conditions (low soil moisture in Brazil) on the yield of sugar cane during the harvest in Brazil in 2024/25 MY.

The implementation of the state program to increase bioethanol production in India, as well as rising prices for biofuels in Brazil will be the constraints on the growth of the global sugar surplus. Weather conditions will remain a key factor in shaping the global sugar balance and the dynamics of world sugar prices in the new season.

Tags: sugar