Argentina annual sugar production projected to fall 1.55m tonnes due to unfavorable weather

ARGENTINA – Sugar production in Argentina is forecast to fall by as much as 1.55 million tons, raw value, due to early season dryness which is expected to negatively impact yields, according to  latest projections by the United States Department of Agriculture(USDA).

USDA further projects that the domestic use of sugarcane for ethanol is expected to grow while sugar exports are projected to fall 8% to 220,000 tons largely due to a smaller sugar supply.

Meanwhile, Venezuelan sugar production is projected upwards to 190,000 MT In market year (MY) 2021/22.

USDA notes Dollar payments implemented in the sugar sector has created a motivation to produce more sugar in Venezuela, despite challenges from diesel shortage and adverse weather conditions.

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Additionally, the country’s decision to prioritize imports of raw sugar over refined sugar is expected to boost sugar imports into the country.

As a result, the FAS Caracas forecast a 73 percent increase in domestic consumption to 510,000 MT driven by increasing production and imports.

Another big production year in Australia

In Australia, USDA forecasts another big grain production in marketing year (MY) 2021/22 after a strong drought-recovery year in MY 2020/21.

Wheat production is forecast at 27 million metric tons (MMT) in MY 2021/22 and barley at 10 MMT, both down from the huge crops in the previous year.

Although overall grain area is expected to be large, USDA forecasts  yields to fall to more typical levels from last year’s record barley, and near record wheat, yields.

Wheat exports are set to decline to 19 MMT in the forecast year from a historically high volume estimated at 23 MMT in MY 2020/21 while  barley exports are forecast to reduce to 4.5 MMT from 7 MMT.

Sorghum production, on the other hand, is forecast to decline slightly in MY 2021/22 to 1.4 MMT after a strong rebound in MY 2020/21.

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Rice production is forecast to continue its recovery from the drought and rise to 440,000 metric tons (MT) (milled basis) in MY 2021/22 and Australia is set to shift back to being a net exporter of rice.

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