The sugarcane industry will still suffer with low sugar prices in the 2013/14 harvest, due to the pressure of the global surplus. Information is from the Brazilian market specialist Tarcilo Rodrigues, director of Bioagência.
He reports that in September the 2012/13 will be over with a large surplus of production and consumption, and that should be around 7 million to 10 million tons, enough to push the prices. “The 2013/14 crop will start in October with volume a little lower, by India and Brazil (which will produce more ethanol). This will help reduce the surplus, but prices will have chance to improve provided that the surplus is consumed . “
He also said that this crop, prices should be around 17 cents and 19 cents per pound, and next year around 19 cents to 23 cents per pound. “To reward and encourage new investment and cover the costs of the financial sector, the ideal would be around 23 cents,” he says.