World: Fitch Solutions projects a 2% rise in raw sugar prices in 2023

Published 2023년 2월 24일

Tridge summary

Fitch Solutions expects raw sugar prices to increase by 2% in 2023, reaching an average of 19 cents per pound from the previous year's average of 18.6 cents, due to lower production in Europe and India and recovering demand in China. However, this forecast is lower than the current trading levels of around 20 cents a pound, as Fitch assumes that Brazil's sugar production will reach 38.1 million tons, a 7.6% increase from the previous year. The report also mentions supply uncertainty due to a pesticide ban in Europe, adverse weather conditions, and shifted sugarcane production in India towards ethanol production.

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

Original content

Fitch Solutions said this Thursday, 23, believe that raw sugar prices should be, on average, 2% higher this year. The estimate is justified by lower production in several regions, including Europe and India, while demand in China should recover. The research arm of credit rating agency Fitch Group says it sees raw sugar rising from an average of 18.6 cents per pound last year to 19 cents this year. Historically high levels are considered a bad omen for policymakers trying to reduce food inflation. On the supply side, Fitch cited uncertainty over European production following the pesticide ban, adverse weather conditions around the world and the continued diversion of sugarcane to ethanol production in India, the world's second-largest sugar producer. . On the demand side, the report cited the relaxation of China's Covid-19 strategy as a positive factor. Still, Fitch's ...

Source: Novacana