Conab: Brazil's sugar output will reach record levels in 2025/26

Conab, the state-owned agricultural agency, said that Brazil's sugar production will reach a record in 2025/26, despite a drop in sugarcane production. The agency cited favorable market conditions.

The agency estimates sugar production at 45.9 millions metric tons. This is up 4% compared to the previous season. Brazil's sugarcane harvest, however, will be 663.4 tons. This is down 2% because of adverse weather conditions in the development stage.

Conab, the Brazilian sugar industry's trade association, said that mills in Brazil, the world's biggest supplier, would prioritize sugar over ethanol in this season. They cited the "high competition" of Brazil's sweetener on global markets.

The agency estimates that sugarcane-based production of ethanol would drop 4.2%, to 28.1 billions liters.

The total ethanol production is expected to drop by 1%, but a 11% increase in corn-based ethanol, to 8,7 billion liters, will help to offset the lower cane-based biofuel output.

Brazil's sugarcane production in 2025/26 is estimated to be 8.79 million hectares (21,7 million acres), an increase of 0.3% from 2024/25. Yields are expected to fall by 2.3%. (Reporting and editing by Andrew Heavens, David Evans and Gabriel Araujo)

(source: Reuters)