SAO PAULO: The congestion at the main Brazilian ports for agricultural commodities exports could exacerbate tightness in the global sugar market, according to the co-head of sugar trading for Sucden, Dimitri Varsano.
Speaking to Reuters before the Sugar Dinner in Sao Paulo Thursday night, Varsano said the delays of up to 35 days to load sugar at the Santos port could increase if there are more rains in November, a situation that could drive sugar prices even higher.
The trader said Brazil’s record sugar season will not be enough to offset bad crops elsewhere, citing production problems in India, Thailand, Mexico and the United States, all related to unfavourable weather.
“And if it is not a production deficit, it is a logistical deficit, because Brazil can not export the entire production. It is going to be the case for this year, and it is going to be the case for next year,” Varsano said.