UNICA is expected to announce that sugar production in the Center South region of Brazil is expected to be lower than production during the 2010/11 season which amounted to 33.5 million tonnes. Production is therefore short of the 35 million tonnes estimated by the market for the 2011/12 season.
The news sent sugar prices soaring to achieve the highest daily gains of 2011 as Brazil approaches peak harvest season. Older cane ratoons, dry weather in the second half of 2010 and higher sugar prices encouraging delays in replanting and use of older ratoons resulted in lower sugar yields. The Center South produces most of Brazil’s sugar.