Agriculture Update: UNICA Reports Higher Cane Crush in Brazil, Cocoa Futures Surge on Supply Concerns

Agriculture – UNICA reports higher cane crush

The latest fortnightly report from UNICA shows that sugar cane crushing in Center-South Brazil increased by 4.2% YoY to 48.4mt in the first half of July, as dry weather conditions boosted the harvesting pace. However, this was slightly lower than average market expectations of 48.8mt. The cumulative sugar cane crush for the season rose 10.1% YoY to 258.3mt. Sugar production rose by 8.9% YoY to 3.2mt in 1H July, while the market was expecting a number closer to 3.3mt. Around 50% of cane was allocated to sugar production in the fortnight, higher than the 47.1% allocated to sugar in the same period last year. Cumulative sugar output so far this season stands at 15.5mt, up 21.9% YoY.

Cocoa futures trading in London and New York surged to multiyear highs on the back of a worsening supply outlook for the 2023/24 season. Recent reports suggest that the Ivory Coast has suspended forward sales to overseas buyers for the main crop starting in October. The move came as excessive rainfall, floods and black-pod disease undermined production. Previously, the producer also said that it had slowed the mid-crop harvest due to unfavourable weather conditions.