The decline in production in Brazil increases the price of raw sugar
the price of raw sugar in Chicago continued to rise and has reached 275 $/MT, which was 8.7% higher than a month ago.
the Main driver of growth was the strike of truck drivers in Brazil, which lasted more than 10 days and paralyzed the supply of cane to processing plants, and reducing the level of processing cane sugar in comparison with biofuels.
Experts S&P Global Platts believe that due to the strike, the production of cane in the second half of may will be reduced compared to the beginning of the month by 23% to 32.9 million tonnes, but in June will rise again.
the Season of harvesting and processing of sugarcane began in Brazil on 1 April. This year's expected record harvest, and the level of sucrose in comparison with the previous year increase by 9.57 kg/t to 132.3 kg/t, which will be the highest since 2007/08.
the Cause of rising prices for raw sugar has been the decline in the second half of the share of the cane, which is the production of sugar from last year's 47.45% to the lowest level in 20 years, 34.4 per cent, driven by higher profitability of ethanol compared to sugar.
due to the reduction In export demand, sugar prices in Ukraine and Russia remain quite low. The acreage under sugar beet in comparison with last year has decreased in Ukraine from 313 to 283 thousand ha, in Russia – from 1.2 to 1.1 million hectares.