Brazil sugar low in New York while London closes mixed

Sugar

Brazil

Published Mar 27, 2023

Tridge summary

Sugar futures contracts closed mixed on international exchanges last Friday (24) compared to the previous day. In New York, at ICE futures, the commodity closed in the red in all batches of raw sugar. The May/23 maturity was contracted at 20.82 cents per pound, a 7-point devaluation compared to the day before. On the other hand, the July/23 screen retreated 5 points, contracted at 20.34 cts/lb. The other lots fell between 4 and 8 points. According to economist Arnaldo Luiz Corrêa, from Archer Consulting, "(...) more mills are starting to look very carefully at the setting of sugar prices for export already for the 24/25 harvest, since the setting of the 23/24 should be close to 80% and there is little to be done at the beginning of the harvest.

Original content

Sugar futures contracts closed mixed on international exchanges last Friday (24) compared to the previous day. In New York, at ICE futures, the commodity closed in the red in all batches of raw sugar. The May/23 maturity was contracted at 20.82 cents per pound, a 7-point devaluation compared to the day before. On the other hand, the July/23 screen retreated 5 points, contracted at 20.34 cts/lb. The other lots fell between 4 and 8 points. According to economist Arnaldo Luiz Corrêa, from Archer Consulting, "(...) more mills are starting to look very carefully at the setting of sugar prices for export already for the 24/25 harvest, since the setting of 23/24 should be close to 80% and there is little to be done at the beginning of the harvest. The curve in reais provided by the generous spread between the internal and external interest rate, offered by banks via NDF (dollar forward contract with financial settlement) remunerates the 24/25 with a good margin even considering an ...

Source: Agrolink