Nov 24, 2009
Value Of Brazil's Sugar Exports Rising
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Even though Brazil exported less sugar in October of this year compared to October of 2008, the total value of the exported sugar increased 17.7% compared to last year. Increased world demand for sugar and disappointing production in India has resulted in improved prices. During the month of October, Brazil exported US$ 61.2 million worth of sugar as compared to US$ 52.0 million in October 2008. The average price of the sugar exported in October of 2009 was US$ 353 a ton compared to US$ 283 a ton in October 2008.
One of the reasons for the increased demand and improved price for sugar is the disappointing sugar production in India. After going from an exporter to an importer of sugar, India is now expected to import 3 million tons of sugar in 2010.
The price of ethanol exports from Brazil also increased last month compared to a year ago. The average price of the ethanol exported out of Brazil in October 2009 was US$ 558 per ton compared to US$ 542 per ton in October 2008, or an increase of 1.6%.
Due to the more favorable returns from sugar processing, Brazilian mills are increasing the amount of sugarcane used to produce sugar as compared to alcohol. It is estimated that Brazil will utilize 280 million tons of sugarcane to produce sugar in 2009 compared to 241 million tons utilized in 2008, or an increase of 16%. Total sugar production in 2009 should total 36.7 million tons or 16% more than the 31.6 million tons produced in 2008. The amount of sugarcane used to produce alcohol will increase 6% in 2009 (348 million tons will be used to produce alcohol in 2009 compared to 325 million tons in 2008). Total alcohol production in 2009 is expected to be 27.8 billion liters compared to 26.6 billion in 2008 or an increase of 4%.