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The volume of sugar expected to leave ports in top exporting-nation Brazil is shrinking at a time when it typically increases as the nations seasonal peak approaches.
Ports in the South American country are expected to ship 364,339 metric tonnes of sweetener in the coming weeks, half of the levels scheduled a year ago, according to shipping agency SA Commodities. Lineups should be rising, given the record-high volume of sugar to be delivered to settle the July contract on ICE Futures U.S.
Demand continues to be weak while buyers are still stocked up following years of global surplus, Bruno Lima, sugar head at INTL FCStone in Campinas, said in interview.
Read also: Sugar glut forces farmers in Maharashtra to use cane as cattle fodder
Last year, Brazilian sugar exports slumped to the lowest since 2008 after ample global supplies pushed down futures in New York, encouraging local millers to divert most of the cane juice to make ethanol. That slowdown is continuing this year, with shipments down 21 percent in the first half versus the same period of 2018, government data show.
Sugar stockpiles in the centre-south growing area are probably 41 percent below last year and 37 percent below the five-year average, according to INTL FCStone. About 11 percent less sugar is being produced in this years crop than in the same period last year, according to industry group Unica.
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