Trader Wilmar reduces projections for Brazil sugar production

Wilmar International, a commodities trader based in Asia, cut its forecasts for sugar production by Brazil in 2024/25 due to the rapid decline in agricultural yields and quality of canes caused by fires and dryness in farmland.

Wilmar now expects Brazil’s Centre-South production to be between 38.2 million metric tons and 39.5 millions metric tons. This is down from the 38.8-40.8% tons that were seen in September. The trader published a preliminary estimate of Brazil's CS sugarcane 2025/26 crop, which was 570-590 millions tons. Wilmar, in a report, said that the current crop conditions are catastrophic. He cited lack of rain, high temperatures, and large fires.

The group estimated that fires had burned 700,000 acres of sugarcane in Brazil. This is a much higher estimate than the 400,000 acres published by other groups in Brazil.

Wilmar stated that the fires had an impact on cane replanting, which would result in a cane profile older and less productive for the new crop (2020/26).

Wilmar is the only receiver.

sugar delivered

The contract for October expired on ICE in early this month. In the coming months, it will receive 1.7 millions tons of sugar raw, mainly at the Brazilian ports of Santos & Paranagua.

Rain has rained in the past.

Finally returned

CS has been affecting Brazil for the past few days and is expected to continue. (Reporting and editing by Franklin Paul, Marcelo Teixeira)

(source: Reuters)