Brazil: Sugar Annual

Brazil’s Marketing Year (MY) 2020/21 sugarcane crush is estimated at 650 Million Metric Tons (mmt), virtually unchanged from MY 2019/20 crop (647 mmt). Good rainfall volumes during Jan-Mar 2020 offset any initial concerns about the dry spell in sugarcane fields during Aug-Oct 2019. The COVID-19 pandemic and the oil price war between Russia and Saudi Arabia will drastically change the dynamics for the Brazilian sugar/ethanol industry during the MY 2020/21, negatively affecting the ethanol industry, therefore significantly increasing sugar production. The projection for the total sucrose (total reducing sugar, TRS) content diverted to sugar and ethanol production for MY 2020/21 is initially set at 46 and 54 percent, respectively, as opposed to 35 and 65 percent, respectively, for MY 2019/20. As a consequence, sugar exports for MY 2020/21 are forecast at 28.85 mmt, raw value, a significant increase of 9.55 mmt, raw value, compared to revised exports for MY 2019/20 (19.3 mmt, raw value).

Brazil: Sugar Annual