Brazil has lowered its prediction about sugar production. This season Center South Region, which is the leader in sugar production, will have smaller production than expected. This will be caused by shortage of raw material yield, namely sugar cane.
90 percent of sugar and ethanol is produced in this part of the country. 31.3 mln. tons of sugar is predicted to be produced in 2012-13 MY. This value used to previously amount to 32.7 mln. tons.
The problem is caused not by smaller quantity of sugar cane, but in reduction of sucrose content in stems. 512.1 mln. tons of sugar cane will be sent for processing. This marketing year, which has started in May, Brazil is planning to export 22.3 mln. tons of sugar from new yield.
The general prediction about sugar production in the country has been lowered to 35.7 mln. tons, whereas it used to previously amount to 37.2 mln. tons. However, sugar cane processing has been reconsidered, having thus risen from 570.8 mln. tons to 572.6 mln. tons.
Future for sugar has approached the level of support of correctional wave (b). Thus, impulse wave (c) may start being formed towards point 20.5. As an alternative, consolidation of prices may happen within the second wave, as the downtrend is being expanded into five waves. Formation of third down wave will be proved by breaking above the level of support 18.8.
