Sugar production in season 2013/14 at the center-south of Brazil, the world’s largest producing region, will be 5.8% higher than in 2012/2013. It is expected to be produced 36.2 million tons from 585 million tons of sugar cane, informed FO Licht. In the previous cycle 34.1 million tons were produced. According to senior analyst of commodities F.O. Licht, Stefan Uhlenbrock, Brazil will produce the largest amount of sugar in history.
According to data from the consultancy, the global sugar surplus for this season will be around 10 million tons, the highest in decades. This increase is due to a higher-than-expected- production in Brazil, China, Mexico, and other countries.
Regarding prices, Uhlenbrock said there was little indication of an imminent recovery and pointed to some challenges such as the Brazilian policy for ethanol and congestion in ports as factors that can support so that prices remain in decline in the short term.