Factors impacting sugar prices in the global market

The October sugar contract closed at 22.67 cents per pound (c/lb), with more than 1.7 million tons effectively delivered. The appreciation observed in the week preceding the expiration may have motivated some producers to make deliveries on the exchange. In an analysis of the movements in the global sugar market, Hedgepoint Global Markets highlights the factors that are influencing the prices of raw and white sugar. “The October contract expired at 22.67 c/lb, presenting an inverse spread in relation to March, of +20 points, reversing a carry of -39 points just a week earlier. This change in the bullish trend may have encouraged more producers, especially in the Center-South of Brazil, to opt for delivery on the expiration, resulting in a total of 1.7 million tons. “Although the market interpreted this delivery as a possible bearish signal – especially considering that the only recipient showed no concern about sugar availability, keeping vessel appointments slow at Brazilian ...