Emily A. Vieira
05/02/2024
StoneX, the agribusiness consultancy, reported on Wednesday that Brazil's center-south sugarcane crushing for the 2024/25 season is projected to reach 622.1 million metric tons, indicating a 1% reduction from the November forecast due to insufficient rainfall in December and January, as per Nasdaq.
If this forecast materializes, the primary sugarcane region in Brazil is expected to experience a 5.4% decline in crushing compared to the preceding 2023/24 season, which set a record for processed volume. The challenges are anticipated in the upcoming season starting in April 2024.
Has revised its sugar production estimate in the region to 43.1 million tons, slightly lower than the earlier projection of 43.2 million tons. Nonetheless, this would still represent a 1% increase compared to the last season.
The expected increase in sugar output is linked to farmers allocating 52% of sugarcane volume to sugar production, up from the previous forecast of 51.4%, and the previous season’s allocation of 49%.
As for ethanol production, which includes biofuel derived from corn, the total estimate for 2024/25 is 31.7 billion liters, marking a reduction from the earlier forecast of 32.2 billion liters and reflecting a 5.5% decrease from the previous cycle.
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