More sugar in India poses a bearish risk for 24/25; check out hEDGEpoint analytics

Published 2024년 2월 6일

Tridge summary

Last week, the sugar market was influenced by macroeconomic movements, with prices nearly erasing all gains due to the Fed's decision to keep interest rates unchanged. However, sugar prices managed to stay close to 24c/lb. The Indian Sugar Mills Association's upward revision of India's readiness did not surprise the market, potentially leading to an additional 1.8 Mt of sugar being diverted to ethanol production. The market is closely watching weather conditions in Central South Brazil, as favorable conditions could lead to an excellent 24/25 season. Market activity remains low as funds await a stronger incentive to re-enter.

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

Original content

Last week was marked by predominantly macroeconomic movements in the market. After the Fed opted to keep interest rates unchanged on Wednesday, prices almost erased all of the gains recorded in the previous two sessions on Thursday, settling at 23.5c/lb. “The feeling of “risk-off” gained strength when Israel contemplated a possible ceasefire. Despite the ongoing conflict in the Middle East, the mere mention of a deal sent a retreat across the energy complex, with Brent and WTI falling approximately 7% each. However, it is noteworthy that, despite some correction in sugar prices, the sweetener managed to maintain its position close to 24c/lb until the end of the week”, explains Lívea Coda, Sugar and Ethanol analyst at the company. . In terms of fundamentals, little has changed according to hEDGEpoint, especially as its numbers were already more optimistic regarding India's 23/24 harvest compared to the market average. Therefore, the upward revision of the country's readiness by ...

Source: NoticiasAgricolas