Climate in Brazil and tight supply in the short term favor sugar prices

Published 2023년 2월 17일

Tridge summary

The article discusses the impact of Brazil's weather conditions and tight supply on the global sugar market. It highlights the rise in sugar prices on the New York and London stock exchanges, with contracts for both raw and white sugar seeing increases. There are concerns about the potential impact of heavy rains in Brazil on the sugarcane harvest and sugar content, which could affect the prospects for the 2023/24 harvest. In the domestic market, crystal sugar prices have fallen, while hydrous ethanol prices have also decreased.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The climate in Brazil, the largest sugar producer in the world, combined with the tight supply in the short term have pressured sugar prices on the international market. Yesterday, the New York (raw sugar) and London (white sugar) stock exchanges closed with gains in all lots. On ICE Futures, the expiration March/23 was contracted this Thursday at 21.45 cents per pound, an increase of 7 points, or 0.3%, compared to the prices of the previous day. The May/23 screen rose 5 points, trading at 19.77 cts/lb. The other contracts rose between 2 and 6 points. Analysts interviewed by Reuters pointed out that the heavy rains that hit several regions of Brazil could delay the sugarcane harvest or even "dilute the sugar content of the cane", which could lower the prospects for crushing the 2023/24 harvest, which officially begins on April 1st, in the Center-South region of the country. London Thursday was also high for white sugar prices on ICE Futures Europe. The May/23 batch was contracted ...

Source: Agrolink