In 2021/2022, Brazil production is estimated to fall 6,1 million tonnes — to 36,0 million tonnes in part as a result of dry conditions and frosts.
It is reported by USDA in November report.
Due to Brazil’s importance as a producer and exporter, this reduction is expected to have a major influence on world sugar supply and prices. As overall sugar prices remain firm and relatively more attractive than ethanol prices, approximately 46% of the sugarcane crop is expected to be processed for sugar and 54% for ethanol, similar to the previous season. Consumption is expected to be down slightly with stocks unchanged. Exports are estimated to drop sharply on lower available supplies.