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Brazil Rains Stall Sugar In Ports
04.08.2010 13:19 "Agro Perspectiva" (Kyiv) —
Vessels from Asia, Africa and North America are being held up in Brazil’s six main ports, unable to load sugar cargoes because of heavy rains, reports Reuters. A record 122 vessels - more than twice as many as last year’s 46 ships - are waiting for 3.62 million metric tons (mmt) of sugar exports. Sugar is loaded into bulk carriers by pouring it from above, through hatch doors on the ship’s deck. When it rains, the hatch doors must shut tightly to protect the cargo against water damage, as the moisture will turn the commodity to hard lumps.
Sugar’s stockpile to consumption ratio will drop to 32%, a 20-year low, according to Bloomberg, which says countries such as the Philippines, India, Pakistan and Indonesia are on very low reserves. Brazil produced less sugar this year because of drought, and next year could produce even less. Total production in the country is estimated at 37.5 mmt for the year beginning April 1, already reduced from a previous forecast of 38 million mmt, and industry groups say they may further lower the forecast. Brazil ships 54% of global sugar exports.
Global demand is estimated at 166.7 mmt for this year, compared with output of 158.2 mmt, reports Bloomberg. The International Sugar Organization (ISO) estimates world inventories to be at 52.8 mmt on Sept.30. ISO forecasts a 9% increase in production next year. If realized, next year’s 172.5 mmt production will provide a 2.5 mmt surplus.
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