Predicted surplus keeps sugar prices low

The sugar market is experiencing a period of pressured prices, amid the advance of global supply expected for the next season, according to a survey by Hedgepoint Global Markets. Consultancies indicate that the drop has gained strength after raw sugar touched the lowest level in five years, at 14.04 cents per pound, a movement associated with the good pace of production in the Center-South of Brazil in the second half of the current crop, which already exceeds the previous cycle. The assessment is that the expected surplus for 25/26 also reflects the performance of the Northern Hemisphere, favored by more regular weather, especially in India. Positive conditions in Thailand and the good development of Indian cane reinforce the prospect of greater supply in the region. The release of Indian exports and the greater global availability compensate for the Brazilian inter-crop and strengthen the scenario of surplus. "Although the ATR (total recoverable sugar) has remained below average ...