It is reported by xm.com.
StoneX cut its projection for Brazil’s Centre-South sugar output by nearly 2 million tonnes to 40.5 million tonnes due to this year’s lower quality of the sugarcane and a smaller-than-expected cane allocation to sugar production.
The broker said Brazilian mills are keeping a relatively high level of ethanol production, answering to higher domestic demand, so they are not earmarking the amount of cane to sugar production that was expected at the start of the harvest in March.
It cut its view on total cane allocation to sugar, the so-called sugar mix, to 50.5% for the crop from 52% projected in May.
Other major changes for large producers included an increase of 500,000 tons for China to 11 million tonnes and a reduction of 200,000 tonnes for Russia to 6.8 million tonnes. India’s number was kept at 28.8 million tonnes.
As a result, The broker projected a surplus of 1.21 million tonnes in 2024/25 from 2.51 million tonnes estimated in May.
