BRAZILIAN SUGAR MARKET TRENDS

May 15, 2024
4:37 pm

BRAZILIAN SUGAR MARKET TRENDS: PRICE ANALYSIS FROM JANUARY TO APRIL 2024

In the 2023-2024 cycle, Brazil’s sugar industry reached unprecedented heights, exporting 35.24 million tons valued at US$ 18.23 billion and generating a historic US$ 19.8 billion in foreign exchange. As a major player in Brazil’s agribusiness exports—only trailing the soy complex and meats—sugar production bolsters Brazil’s GDP and positions it as a global market leader.

With 345 active mills across 1,200 municipalities, this sector is a powerhouse of economic activity and international trade. The first quarter of 2024 has shown significant movements in Brazil’s sugar export market. This article delves into the details of sugar prices, the leading exporting states and cities, the primary countries of destination, and other relevant metrics based on data filtered for the 2023-2024 period.

2024

Brazilian Sugar: Leading Exporting States and Cities

In the first four months of 2024, the State of São Paulo had become the principal exporter of sugar in Brazil with a volume of about 21.95 million tons. Following São Paulo, other notable exporters include Minas Gerais—4.48 million tons, Paraná—3.08 million tons, and Mato Grosso do Sul—1.97 million tons.

Analyzing local loading data, Santos emerged as the leading port for sugar exports in the period, having already dealt with 1.01 million tons. Other important ports are Porto de Paranaguá (0.25 million tons), Recife – Porto (0.16 million tons), and Maceió – Porto (0.11 million tons).

Current Export Prices

Sugar export prices have gone through changes in early 2024. The numbers are showing the following average prices for export:

EXPORT PRICES

A clear upward trend reflects a continuous rise in sugar prices that mirrors market dynamics and may be reflective of global demand oscillations.

Countries of Destination

Brazilian sugar has reached different countries, in varied volumes of exportation. The major destinations for Brazilian sugar include the following:

COUNTRIES

These are African, Asian, North American, and Latin American markets, illustrating the vast exporting distance of Brazil.

Export Volumes and Trend

From January to April 2024, the volume of sugar exported by Brazil totalled 1.69 million tonnes. This volume has reflected the strength of the country’s performance in the global sugar market. Top-line monthly export volumes:

SHIPMENT VOLUME

The highest volumes were recorded in the first months, but in April they slightly declined, possibly due to seasonal factors or market adjustments.

Additional Data Insights :

DATA INSIGHT FROM UNICADATA

Export and Import Volumes: The overall forecast export volume of sugar in 2024 shows 10.8 million tons, marking a growth of 80%. The average export price R$ 2,646 per ton, around $514 a ton considering a 1USD = 5.15 Reais parity, increasing by 12.6% about the last year.

Sugar Production: The accumulative data for the 2024/2025 crop indicates large milling and production figures for sugarcane. To be specific, 35.29 million tons of sugarcane were milled, with a result of 1.541 million tons of sugar production.

Quality and Yield: The ATR for the sugarcane went to 5.717 million tons, with an ATR per ton of cane at 112.9, whereas the yield went up to an average of 59.54 kg of sugar for every ton of cane.

Brazil remains the great protagonist of the world sugar market, and São Paulo is at the head, with Santos port as the vanguard of exports. The rise in export prices from January through April 2024 shows strong demand for Brazilian sugar. Undoubtedly, Brazil is one of the most diversified destinations in terms of destination countries, and one that keeps large production and export volumes in the sugar industry, vital to the nation’s export economy.

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Note: This analysis focuses exclusively on the white sugar market.