Brazil's Copersucar, the world's largest sugar and ethanol seller, expects smaller sugar production in the Brazilian center-south region in the current season due to ageing cane fields and drier weather and sees a more positive outlook for sugar prices.
Copersucar expects total sugar production in the center-south in 2018/19 to be 28 million tonnes versus 36 million tonnes in the previous crop, company Chief Executive Paulo Roberto de Souza told reporters. Total cane crush is seen at 555 million tonnes compared to 596 million tonnes previously.
The Brazilian company, which is in charge of selling sugar and ethanol produced by 35 associated center-south mills, closed the 2017/18 crop crushing 85 million tonnes of cane, 3 percent less than in the previous season. It expects to crush 83 million tonnes in the new crop (2018/19, April-March).
The firm said its net profit last season fell 42 percent to 147 million reais, affected by smaller gains from its joint sugar trading venture with Cargill, called Alvean.
"Sugar prices fell due to the global oversupply and we also had low volatility in those prices, which impacted Alvean (negatively)," Souza said.