Algeria received 352 thousand tons, while Malaysia imported 324 thousand tons of food from Paraná, the primary sources.
The consultancy StoneX projects a surplus of 3.4 million tons in global sugar production for the 2023/24 harvest, surpassing the earlier estimate of 200 thousand tons. The rise is primarily attributed to increased commodity supply from Brazil.
During the preceding cycle, there was a smaller surplus of only 73 thousand tons. The 2022/23 sugar market cycle saw a decline in production in India due to favorable harvests between 2020 and 2022 caused by La Niña. The reduced Indian supply, coupled with export limitations, placed a heavier burden on Brazil to ensure global commodity supply through exports, according to a report by the consultancy.
Currently, StoneX predicts a global sugar production of 195.6 million tons and consumption of 192.2 million for this season, reflecting increases of 2.3% and 0.9% respectively compared to the previous harvest. The consultancy anticipates that the record agricultural yields, investments in crystallization, and sugar maximization in Brazil's Center-South region will offset losses in other parts of the world.
Anticipated contributions from Brazil's Center-South region for the October/23 to September/24 harvest are expected to reach 45 million tons, marking a 12.6% increase in the annual comparison. This performance is likely to offset the projected 5.2% decline in India, which is estimated to produce 31.1 million tons. Thailand, however, is forecasted to experience a substantial loss of 24.9%, yielding 8.6 million tonnes.
Conversely, China may witness an 11.5% increase in sugar production, reaching 10 million tons, according to the consultancy's survey. Similarly, there is a prospect of a 7.1% rise for the European Union and the United Kingdom, reaching a combined 16.5 million tons of sugar.
StoneX emphasizes that the sugar market's trajectory in Asia during February and March 2024 will be crucial, as the duration of the harvest in the southern states of India could still impact production outcomes.
Comments