Brazil’s 2013/14 sugar exports to rise 12 pct- Macquarie

(Reuters) – Exports from Brazil’s key sugar producing region will rise to 25.5 million tonnes in 2013/14 from 22.7 million tonnes in the current season, which will help reduce global prices further, an analyst at Macquarie Bank said on Tuesday.

The average raw sugar price in the 2013/14 season starting from April is seen at 16 cents per lb, compared to current pries of about 19 cents an lb, Kleber G. Andrioli, the bank’s global sugar and ethanol research analyst said on the sidelines of a sugar conference in New Delhi.

“Brazil itself will be a reason for lower global sugar prices, which could average around 16 cents per lb in 2013/14,” he said.

October raw sugar futures in New York rose 0.25 percent on Monday to settle at 19.43 cents per lb, after hitting a two-year low for the front month of 18.81 cents on Thursday.

The cost of sugar production in Brazil has steadily risen largely due to labour cost, environmental regulations and in-land transportation, just as prices are falling, Andrioli said.

“Because of lower prices, there will be tough times for the industry as margins will be tight,” he said.

Sugar output from the centre-south region of Brazil, the world’s top sugar producer and exporter, is likely to rise to 35.8 million tonnes in 2013/14 from 32.8 million tonnes a year earlier, Andrioli said.

“The main reason behind the production rise in 2013/14 is better (cane) productivity. The productivity is expected to go up by 3 tonnes per hectare,” he said.

The International Sugar Organization expects a global sugar surplus of 5.86 million tonnes in the season running from October 2012 to September 2013, up from the previous season’s surplus of 5.19 million tonnes. (Reporting by Mayank Bhardwaj and Ratnajyoti Dutta; Writing by Rajendra Jadhav; Editing by Miral Fahmy)