Some relief on the sugar front

Consultancy Datagro announced that Brazil's center-south region is
anticipated to have a sugar output of 38.3 million tonnes in the current
season, which began in April. *This is a 13.6% rise from the previous
harvest, and can be attributed to favorable weather conditions and
effective crop management.* During the New York Sugar Week, Datagro's
analyst Guilherme Nastari predicted that the region will produce 50 million
tonnes more sugarcane in 2023/24 compared to 2022/23, resulting in a total
crop of 598 million tonnes.

Additionally, Nastari also noted that global consumption is projected to
increase by 1.2% in 2023/24, a higher rate than the 0.8% increase observed
for 2022/23.

On the same topic StoneX head of sugar analysis, Bruno Lima, said that the
forecasted weather phenomenon, *El Nino, is not likely to impact Brazil
sugar production.* According to historical data, he said, the last two
strong El Ninos in 2009 and 2016 actually allowed for increased sugarcane
crush in Brazil’s center-south.

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