Brazil's Copersucar sees better sugar prices ahead on weather

 

Brazil's Copersucar, the world's largest sugar merchant, is upbeat on sugar prices in the mid-term as dry weather in the world's top producer should confirm a smaller production in the 2024/25 season that started in April.

It is reported by ChiniMandi.

Copersucar Chief Executive Tomas Manzano told reporters on an earnings call on Wednesday that prices should rise from current levels close to 19 cents per pound in New York SBc1.

The company posted a net profit of 281 million reais ($51.34 million) for the crop year 2023/24 ended in March, 58% less than in the previous season, saying low ethanol prices for a long period in Brazil, along with the fall on sugar prices in December, hurt its earnings.

Copersucar posted revenues of 54.1 billion reais in 2023/24, 22.9% down from 2022/23. It sold 13.3 million metric tons of sugar in the season versus 11.5 million tons. Its ethanol sales in Brazil, export markets and in the United States, where it controls the trader Eco-Energy, rose to 17.2 billion liters from 12.1 billion liters.

Manzano said the drier than normal weather in Brazil this year has hurt cane development and will lead to a smaller crop, as expected.

He said mills in the country will increase cane allocation to sugar production as the crop advances, adding that recent data showing cane allocation to sugar, the so-called 'sugar mix', below last year reflects a picture of some weeks ago.

«Mills will press the gas pedal strongly on the sugar mix as the crop advances, as the cane gets more developed», — he said.


131