World sugar trade to fall to multi-year low

Global sugar supplies will decline to the lowest level in the last 6 years in early 2025.

This forecast was made by the head of the raw sugar trading department of Czarnikow Group Ltd. Pedro Mizutani, writes Bloomberg.

He noted that the severe drought in Brazil has worsened the condition of sugar cane crops, which will limit the capacity of sugar factories in the last months of this year and is likely to delay the harvest next year. There are concerns about production restrictions caused by the spread of plant diseases.

According to the expert, these factors have led to the fact that sugar prices have remained above average over the past few years and have emphasized the world’s dependence on Brazilian supplies. The country is expected to account for nearly 75% of the world’s raw sugar trade this year, according to Datagro, a consulting company.

According to Mizutani, the sugar cane harvest in Brazil’s main production region is not expected to begin until the second half of April, which is several weeks later than usual.

Supplies should be “very limited” in the first quarter of 2025, even though the decline in Brazilian production is being held back by lower demand and large production in China, said Luiz Silvestre Coelho, chief trader at Sucres et Denrees SA in Brazil.

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Tags: prices, sugar