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Mexico’s sugar production, impacted by drought, falls short of expectations

RIO DE JANEIRO, BRAZIL – Sugar production in Mexico has so far reached 5.6 million tons in the 2020/21 (October-September) season, according to trading firm Czarnikow, citing a volume 500,000 tons below earlier estimates.

, Mexico’s sugar production, impacted by drought, falls short of expectations
Trading firm Czarnikow projects Mexico’s total sugar exports in 2020/21 at 1.15 million tons, the lowest volume since at least 2014 (Photo internet reproduction)

“The impact of the 2019/20 drought has stretched into this year and reduced the country’s sugarcane supply,” Czarnikow said in a report on Tuesday. “Thus, (sugarcane) processing this season slowed earlier than normal.”

Mexico is the largest supplier of sugar to the United States, one of the world’s largest consumers. With a smaller than average crop, Czarnikow thinks the country will have less for export.

“With low production and stable domestic prices, Mexico will likely focus on meeting domestic demand and ship the entire U.S. quota (880,000 tons), with both paying better than the global export market,” as stated by an operator.

Mexico’s total sugar production in 2020/21 is forecast at 5.7 million tons, lower than the average of recent years when production was consistently above 6 million tons, with the exception of the 2019/20 season drought, when production stood at only about 5.2 million tons.

Czarnikow projects Mexico’s total sugar exports in 2020/21 at 1.15 million tons, the lowest volume since at least 2014.

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