Trader Wilmar cuts its estimate for Brazil sugar output
By Marcelo Teixeira
NEW YORK, Sept 19 (Reuters) -Singapore-based commodities trader Wilmar WLIL.SI cut its projection for Brazil's centre-south sugar production to a range between 38.8 million and 40.8 million metric tons on Thursday from its initial estimate of 42 million tons.
Wilmar said it had revised its projection due to the drought and farmland fires that have hurt production in Brazil.
WHY IT'S IMPORTANT
Brazil is the world's largest producer and exporter of sugar, accounting for around 70% of the global export market for the sweetener.
Wilmar is one of the largest traders of agricultural commodities, including sugar, having an large book of clients particularly in Asia.
CONTEXT
* Brazil is facing its worst drought in history, according to government data. The excessive dryness caused widespread fires, worsened air quality, reduced Amazon river levels to historical lows and cut crops of sugar, coffee and orange, among others.
* There are concerns about the impact to the new grain season as farmers await rains to plant soy and corn.
KEY QUOTES
Wilmar said that even if climate conditions improve in October, damage is already done to the current sugar crop. "We will make a further release in 15 days after deeper analysis of the fields," it said.
Reporting by Marcelo Teixeira; Editing by Sonali Paul
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