A high sugar price in Brazilian real equivalent and the fuel ethanol demand uncertainties in 2021 are expected to encourage producers to keep maximizing sugar production to supply a deficit global market.
Brazil proved to be a consistent sugar supplier in 2020, able to increase its production by more than 44.2% in a crop year. The country, thus, changed the global supply and demand picture from a possible deficit in the global 2019-20 crop year (October-September) into a small surplus of 121,000 metric tons raw value, or mtrv, according to S&P Global Platts Analytics.
Brazilian producers shifted to higher sucrose levels in sugar production due to the higher profitability that sugar in the export market paid over ethanol in the domestic market throughout the Center-South during the 2020-21 crop year (April-March). The scenario is expected to be repeated in the next Center-South crop in 2021-22…
