Producers in the sugarcane, sugar, and ethanol market in south-central Brazil have launched a high-yielding, high-yield crop in 2023 2024, which is not often common. This is Rabobank's assessment in its report "Brazilian Agribusiness Outlook 2024", as well as ** on these and several other commodities.
Rabobank said that climate will play a key role in determining the timing of crop growth, which will be a cause for concern due to the impact of the abundance of the aforementioned commodities.
It is expected that in 2023 24 the region's available sugarcane for harvest will be 6200 million tons to 6between 3.5 billion tons. Sugarcane harvested before March 31 is considered for the 2023 24 crop year.
The bank also believes that preliminary estimates suggest that "2024 25 could be another year with good trading volume and **". The initial grind for 2024 25 years is 6100 million tons.
Rabobank also warned that due to the rains, there could be logistical bottlenecks and that "export sugar will need to stay longer at the factory or transshipment terminal due to the full warehouse at the port".
Taking into account the international situation, the report states that sugar in 2024 and 2025** indicates that the industry will "choose to maximize the proportion of sugar in its product mix in 2024 25".
Rabobank detailed that the central and southern regions have accumulated a lot of crops, but the El Niño phenomenon has put pressure on India and Thailand, reducing production in these countries and globally in the first half of next year.
Rabobank concluded: "In the case of India, which exported 6.1 million tonnes of sugar in 2022 23 and federal elections will be held in April and May 2024, India** has suspended the mandate for sugar exports, which is almost impossible to change until the elections are passed." ”。