Production of sugar from the globe's largest processing region will slip due to reduced generation from crops, according to an industry association.
Bloomberg reports Unica said output from the Center South of Brazil will drop for the first time since 2005. The region's production this year will be 32.4 million metric tons, a 6.4 percent reduction when compared to the 34.6 million tons projected on March 31.
"The situation will demand continuous monitoring of cane fields during the next three months, when around 45 percent of production is realized," according to Antonio de Padua Rodrigues, technical director of Unica.
Sugar futures closed the Wednesday trading session down 0.82 percent, a .0025 slip to 30.24 cents per pound.
Production for the year prior was 33.5 million tons of sugar. Brazil is the globe's top producer of sugar.
Production for the second half of the month of June from Center South increased to 2.58 million tons, a slight increase from the 2.55 million tons registered during the year prior. The differential in amount of sugar cane harvested by farmers for those time periods was 42.1 million tons versus 41.8 million tons.
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