Conab sees record sugar output in Brazil in 2023/24

Brazil's sugarcane production is expected to reach an all-time high 677.6 million tonnes in 2023/24, government agency Conab said on Wednesday, up 10.9% from the previous year and above an August estimate of 652.9 million tonnes.

It is reported by Nasdaq.

The higher crop, driven by favorable weather and increasing yields, will lead sugar production in the world's largest sugar exporter up 27.4% on a yearly basis to a record 46.88 million tonnes, Conab said in a report.

"With a favorable market scenario for the sweetener, most of the sugarcane crop is expected to be allocated to sugar production," said the agency, whose previous forecast for output stood at 40.89 million tonnes.

Raw sugar futures on ICE earlier this month reached a 12-year high boosted by supply tightness expected to continue into next year as an El Nino weather event curtails production in major Asian producers India and Thailand.

Conab also estimated total ethanol production in Brazil this season, taking into account biofuel made from both sugarcane and corn, at 34.05 billion liters, up 9.9% from 2022/23 and above the 33.83 billion projected in August.