Brazil is now the world’s largest producer of sugarcane.
Despite a positive early expectation for output in Brazil, where the sugarcane harvest started in early April, sugar prices are trading at 11-year highs.
The current harvest’s underwhelming sugar production in India and decreased production in the European Union as a result of the drought and heat wave last summer, as Gro wrote about here, are factors that are driving up prices. The world’s sugar reserves have dropped two years in a row, reaching their lowest point in ten years.
The world’s greatest producer of sugar, Brazil, could only reverse this trend of diminishing sugar reserves with an exceptional crop. Because of this, it’s crucial to keep an eye on a few crucial production factors in Gro as the Brazilian crop develops over the coming months.