- Guatemalan sugar production could hit a 10-year low in 2020/21.
- This is because heavy rains reduced the canes’ sucrose yields (sugar content).
- The lack of sun also hindered cane development.
Wet Weather Hits Sugar Production
- We think Guatemala will produce 2.5m tonnes of sugar in 2020/21.
- This is a 200k tonne decrease year-on-year and Guatemala’s poorest season since 2011/12.
- We think the wet start and finish to the campaign reduced the canes’ sun exposure and limited sucrose development.
- With this, the mills were unable to extract as much sugar as they usually would.
- On top of this, the consistent cloud cover hindered cane development as less sunlight reached the cane.
- This resulted in Guatemala’s poorest cane harvest for 10 years.
- The repercussions were therefore felt across raw and white sugar production.
- The former fell by 80k tonnes, while the latter fell by 115k tonnes year-on-year.
- With this, Central America’s sugar export availability has reduced (more on this to come).
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