There are still quite a few sugar beets to be harvested. According to Cosun, the area of sugar beets that is still in the ground is above the long-term average. In Brazil, significantly less sugar was produced at the end of October.
According to Cosun, the sugar beet area that still needs to be harvested is around 42.000 hectares after the first week of November. In total, 48% still needs to be harvested. According to Cosun, the weather in the first week of November was good, but this can change with the precipitation in the weather forecast. According to IRS, it is therefore wise not to wait until the last moment to harvest. According to the research institute, the sugar yield reaches its optimum at the beginning of December. Harvesting under wet conditions without damaging the beets and soil is becoming more challenging. Structural damage due to late harvesting under wet conditions will occur again the following year - or, if things are really bad, years. In addition, the chance of frost is increasing and, according to IRS, we have seen in previous years that the weather can change quite suddenly.
Sugar prices on the ICE exchanges in New York and London started this week higher than last week, with New York at $489,43 per tonne on 18 November, while London was at $573,50 per tonne.
According to the latest published data from Brazil’s Unica, sugar production is significantly lower than last year in the second half of October. This brings sugar production in the main production region down 24,3% compared to the same period last year in the last two weeks of October, at 1,785 million tons of sugar. Since the start of the season, sugar production is now 0,3% higher than last year, with a total of 37,377 million tons.
Brazilian sugar processors hampered by early rainy season
Sugar giant Wilmar reports on X that a large number of Brazilian sugar processors have already stopped their activities. This is common practice from December onwards due to the rainy season, but it is now very early. Above-average rainfall is also expected this month, which is expected to cause more sugar processors to stop production.
Wilmar estimates Brazil’s sugar production for the 2024/25 harvest to total 39,5 million tons, based on 609 million tons of sugarcane. Next Thursday, the US Department of Agriculture USDA will publish the new Sugar World Markets and Trade report, which may also provide new global production expectations.