Lower cane crop in Brazil would support sugar prices — Bank of America
The prices of benchmark raw sugar in New York are likely to stay firm and could gain ground, based on a global lack of the sweetener, according to a note published by Bank of America Global Research on Monday, reported Reuters.
As per media report, analysts at the bank said the sugarcane crushing in Brazil, the world’s largest sugar producer and exporter, is falling short of expectations because of dry weather conditions and recent wildfires in São Paulo state.
«There is also a risk to cane crushing volumes in Brazil for the 2025/26 season, as a potentially drier inter-harvest period and the damage caused by wildfires may impact crop yields, particularly in renewal areas», — the bank stated, adding that most forecasts for Brazil’s sugar output are “overestimated.”
Bank of America sees the world having only a 650,000 metric ton sugar surplus, which would translate to a stocks-to-use ratio of 54.1%. These supply-and-demand dynamics should push prices into the range of 21 to 22 cents per pound.