Agri-Chem.net Chinese website reported:One month before the end of the 2020/2021 sugar production year (April 2020 to March 2021), the Brazilian Agricultural Supply Company (Conab) has made a forecast that Brazil will Sugar production and export volume will set a historical record. Brazil’s sugar production in 2020/2021 is estimated to reach 41.8 million tons, an increase of 40%over the previous year. It is expected that sugar exports in 2020/2021 will also hit a record high.
According to data from the Secretariat of Foreign Trade (SECEX), although this production year will not end in March, Brazil has set a record of 28.4 million tons of sugar exported from April 2020 to January 2021. The export volume for the same period last year was 18.9 million tons.
The reason for both the production and export volume is that the blockade caused by the new crown pandemic has led to a decline in ethanol demand, and the price of sugar is firm. Brazilian sugar producers have chosen to increase sugar production and reduce ethanol production.
In the third assessment of Brazil’s 2020/2021 sugarcane crops, Conab estimated that due to a 1.9%increase in planting area and a 1.5%increase in productivity, Brazil’s sugarcane production will increase by 3.5%. The company’s fourth evaluation of this crop will be announced at the end of April.
Due to the continued strength of sugar prices, the Brazilian currency trend is improving, and the outlook for the 2021/2022 production year that will start in April is also very optimistic.
Some people worry that Brazil’s delay in starting soybean exports may interfere with exports of new sugar this year, which will begin in May. Santos Port has warehouses and terminals dedicated to sugar exports, and it is estimated that 80%to 90%of Brazil’s sugar exports are done through this port. Delays in soybean exports may cause more congestion on road traffic, but this should not interfere with actual sugar exports.