Sugar: market remains volatile, awaiting a reaction in demand

Over the past week, the trade war between the US and China has generated volatility in the commodities market, but sugar has remained relatively stable, as it is not a commodity that is traded significantly between the two countries. As such, most of the price adjustments were attributed to the robust delivery of the March contract. “Regarding deliveries, Central America’s increased share of exports eased concerns about short-term supply, with the May/25 contract closing at 18.3c/lb, below the March level. Supply remains tight, and demand has been pushing prices down, despite the potential for a recovery in the May contract if demand picks up,” notes Lívea Coda, Market Intelligence Coordinator at Hedgepoint Global Markets. China China reached 9.7 million tonnes of sugar through February, with a significant increase in production, with the trend of lower imports seen continuing through December 2024. The May contract is at a delicate point, with Chinese import arbitrage ...