Brazilian sugar production and exports will reach new record high levels this season, as mills increase the ration of cane diverted to sugar, rather than ethanol, this was the result of rising prices and a week currency which incentive exports, US officials said.
The U.S. Department of Agriculture bureau in Brasilia forecast sugar exports at 29.07 million tons in the 2017-2018 season, which has started up 1.3 million tons from the previous season.
The Bureau stated that "The sugar-ethanol industry remains steadily driven by the continued estimated deficit in the international sugar market," on addition to that it also states that Brazil has maintained its competitive spirits on the global sugar market in part because of devaluation of the local currency.
The Total Brazilian sugar production was forecast to hit record level, of 39.65 million tons, up 500,000 tons year-on-year, that is thank to the rising production in the country’s center-south cane belt.
This increase in production is expected despite a 6.5 million ton drop in the Sugar cane crop, to 645 million tons this was because of the irregular weather conditions in various spots and aging of the sugarcane fields.
The Bureau also stated "Specific growing regions in the state of Sao Paulo, like Bauru, were also adversely affected. Aging of sugarcane fields will also likely affect production,"
In comparison, the Brazilian Crop Supple agency Conab, which also forecasts the cane production falling, expecting about 46% of cane going to sugar production. Which leaves sugar outputs slightly down on the year, at 38.69 million tons