Brazil's Ministry of Agriculture, Livestock and Supply just disclosed that Brazilian sugar production should reach 34 million tons in the current crop, growth of 10% over the previous one. The estimate is by the coordinator of the Sugar and Alcohol Department at the Ministry, LuÀs Carlos Job, in a press statement.
According to the Ministry, the total is record and represents 20% of global production. Job pointed out that the expansion of the Brazilian crop was boosted by lower production in other nations, especially India.
"For local reasons, India, the second main producer in the world, had significant reduction in production over the last two years, and the country should have to import between six and eight million tons by late 2010," said Job.
The coordinator added that there was great reduction in global sugar stocks over the last three years due to the weaker crop in India. This also influenced the price of the commodity, which reached the highest level in 30 years, according to the Ministry.
In future, according to Job, there may be small recovery in production in India, the United States, Thailand, China and Mexico, which should push prices down. "In the futures market, the tendency is for gradual reduction in prices of sugar up to 2011. Sugar in bulk should drop from the current US$ 480/ton to US$ 390/ton and the refined variety, from US$ 540/ton to US$ 490/ton," said the coordinator, always according to the ministry.
With the current exchange rates, according to the ministry, the production of sugar should grow more than that of ethanol in the next two crops.
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