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August 26, 2024
(Bloomberg) -- An unprecedented outbreak of fires that hit sugar-cane fields in the world’s top exporter Brazil over the weekend is set to impact global supply of sweetener and elevate prices.
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The impact could last through the coming year, as the fires have affected cane that was sprouting. In such cases, the heat severely damages the roots of the plant, meaning producers will likely have to replant or face a smaller harvest in the upcoming season.
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As much as 5 million metric tons of sugar cane could have been lost in Sao Paulo due to fire, according to two preliminary estimates from Green Pool Commodity Specialists and financial services firm FG/A. The early estimates used satellite images, and there could still be imprecisions. Still, they represent about 1.4% of the cane in Sao Paulo. The impacts on total sugar production weren’t estimated as some of the burnt sugar cane could still be in good enough condition to be processed.
-snip-
(Bloomberg) -- An unprecedented outbreak of fires that hit sugar-cane fields in the world’s top exporter Brazil over the weekend is set to impact global supply of sweetener and elevate prices.
-snip-
The impact could last through the coming year, as the fires have affected cane that was sprouting. In such cases, the heat severely damages the roots of the plant, meaning producers will likely have to replant or face a smaller harvest in the upcoming season.
-snip-
As much as 5 million metric tons of sugar cane could have been lost in Sao Paulo due to fire, according to two preliminary estimates from Green Pool Commodity Specialists and financial services firm FG/A. The early estimates used satellite images, and there could still be imprecisions. Still, they represent about 1.4% of the cane in Sao Paulo. The impacts on total sugar production weren’t estimated as some of the burnt sugar cane could still be in good enough condition to be processed.
-snip-
