Sugar: bearish trend marked the last week in Brazil, with an eye on the Asian market

Last week, sugar prices fell due to several factors. “Thailand started its crushing in December, with positive results: production of 193kt of sugar, from 2.7Mt of cane, higher productivity than the previous cycle, of 23/24”, observes Lívea Coda, Sugar and Ethanol analyst at Hedgepoint Global Markets. On December 10, China’s Agricultural Products Standards Office (AGDA) suspended imports of Thai syrup and sugar blends due to health concerns, leaving around 1Mt of sugar stranded. “This is happening at a time when the Chinese harvest is showing exceptional results, with production 53% higher than last year, and lower demand for imports – falling from 920kt to 540kt in October this year, compared to the same period last year,” says the analyst. In addition, the Unica report indicated a surprising accumulated crushing that exceeded 600Mt for the 24/25 harvest in the Center-South. “In light of the results, we revised our estimates from 610Mt to 616.5Mt,” highlights Lívea. The analyst ...