Through May 6, Mexico’s sugarcane crush and sugar production continued to lag behind recent seasons. Cane tonnage, the yield of raw cane per hectare (ha), is still down 14 percent or 10.3 MT per ha; sugar content (recovery) is down by half a percent.

Mexico’s crop may be down by about 13 percent in 2022/23, down about 9 percent from the five-year average. USDA’s initial forecast sees the 2023/24 crop near 5.9 MMT, a rebound of 10 percent YOY and up nearly 2 percent from the five-year average. Carryout in 2022/23 was 889,000 MT, a three-year low, and 2023/24 carryout is expected to grow only marginally assuming a moderate recovery in exports.

A recovery for the 2023/24 crop is possible, but Mexico’s cane is yet another season older.

With the crush campaign approaching a disappointing end, reference sugar prices have continued to strengthen.

The full version of this commentary appeared on our IQ platform May 17, 2023. Further information, statistics, and pricing for the sugar market are available to IQ subscribers. Learn more about becoming a subscriber.


Source: 123rf.com
Posted by: Information Services
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