Brazil sugar production to drop to 28 mln tons

Brazil is expected to cut sugar production in MY2018/19 to around 28 million tons from 36 million tons as cane volumes fall and mills prioritize ethanol production at the expense of sugar due to better returns for the biofuel, Ukrsugar reports with reference to Reuters.

Analysts project the ongoing center-south cane crop to fall to 560-570 million tons from 596 million tons last year, as most fields have not had widespread rains for more than two months.

Around 11% of fields are expected to be renovated this year, lower than an ideal level of 17 to 18%, which will lead to older cane fields that tend to produce less.

Earlier it was reported that the FAO Sugar Price Index averaged 166.7 points in July, down 10.7 points (6%) from June and nearly 20% lower than its level in the corresponding period of last year.