BRAZILIAN SUGAR – 2022/2023 Crop Starts
Brazil produces sugar all year round and has a harvest where 80% is produced and a smaller harvest where the remaining 20% is produced. This difference in production occurs because Brazil is a country with continental dimensions, a tropical climate and productive regions with different characteristics.
In the Center South of the country, most of the sugar and ethanol is produced. The productive period runs from March to April. The North and Northeast regions produce from November to March.
The sugarcane harvest in the Center-South region of Brazil officially started last Friday (April 1st), with a few units already processing the raw material at the beginning of the season.
An unofficial survey, however, points out that the vast majority of mills should start processing the new crop in the second half of April, because the sugarcane fields would not yet be “ready” for the new cycle.
He said the worst drought in 90 years in Brazil, which occurred last year, helped mills to process quickly amid a crop failure in 2021, and there was not much cane left in the fields to be harvested in early 2022
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Production Estimate 2022/23
Sugarcane production is expected to be far from the more than 600 million tons recorded in 2020/21, but it should also be slightly higher than the more than 520 million tons seen in 2021/22.
The estimate for the main producing region [central south of Brazil] is 562 million metric tons.
Drought and frost impacted the start of production, but many mills had raw material stocked from the previous crop and are ready to supply the initial market in April and May when the purchase volume is higher.
Price trend for the 2022/23 Sugar Cane Harvest
Indications that Brazil will have lower sugar production, together with a slight improvement for the Northern Hemisphere and a higher global demand, would lead the global market to a dependence on the supply of India which, in turn, depends on prices around 20 cents a pound to be competitive. Thus, Carvalho believes that the commodity will be traded between 19 and 21 cents on the dollar.
Brazilian Sugar Import
Despite high prices, this is the best time to negotiate annual sugar contracts, as mills will have full stocks and a little more willing to negotiate supply terms.
Global production is estimated to be less than the demand for sugar which continues to grow. Then, when the harvest comes to an end in October, November, competition between suppliers will decrease and the upward trend in prices will strengthen.
If you are a sugar importer and want to do business with serious suppliers, Mello Commodity can help.
We are a company specialized in the marketing and sales of agricultural commodities, especially focused on the supply of sugar.
We manage the commercialization of sugar quotas from three important suppliers, duly verified. Yes, each supplier undergoes a rigorous analysis that verifies experience, financial health, financial capacity, reputation, among other factors.
WE DO NOT ATTEND INTERMEDIARIES OR PAY COMMISSION
We respect the work of business developers a lot, but we plan and execute prospecting strategies with the aim of reaching the final buyer, the decision maker. In addition, Mello Commodity is not authorized to offer or pay commission.
So, only contact our team if you are really the buyer. This way we avoid wasting time and money.
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