Asian commodities trader Wilmar announced on Tuesday that recent rains in Brazil’s primary sugar-producing region towards the end of March and early April are set to enhance the outlook for this year’s sugar season in the largest global producer and exporter of the sweetener.
According to Wilmar, Brazil’s Centre-South region is anticipated to achieve its second-highest agricultural yield in sugarcane fields over the past nine years due to the favorable weather conditions. The Singapore-based company, a significant player in the international sugar market, projects the 2024/25 sugarcane crop in Brazil’s Centre-South region to range between 620-630 million metric tons.
Wilmar’s estimates forecast sugar production to fall within the range of 42.5-44.5 million tons, with a crop target of 43.8 million tons, which would closely match the record production levels observed in the preceding crop season. These projections from Wilmar consistently rank at the higher end compared to estimates from industry analysts and traders.
In contrast, France’s Sucden, another prominent sugar trader, anticipates a notably lower production figure of around 40 million metric tons for Brazil’s Centre-South region. Sucden attributes this reduced forecast to below-average rainfall throughout the various stages of crop development.
The contrasting outlooks between Wilmar and Sucden underscore the significance of weather conditions in shaping the outcomes of Brazil’s sugar crop and subsequent production levels for the upcoming season.