Sugar market resilience and Thailand’s role

The sugar market remained resilient despite the bearish configuration of the energy complex and the macroeconomic context. Both WTI crude and RBOB gasoline saw significant price drops last week, around 9% each, attributed to reduced demand for gasoline, according to the EIA report, and the return of Russian diesel exports, according to shows report from hEDGEpoint Global Markets. The current strength of sugar is supported by low availability in the Northern Hemisphere and the recent increase in precipitation in the Center-South, which could disrupt the pace of sugar flow. Thailand is an important sugar producer, exporting around 70% of its total production, an average of 7.3Mt. Climatic challenges and competition by area could limit the country's participation in the 23/24 season. With more than 250 USD/ha difference between the remuneration of cassava and sugarcane, the sugarcane area is expected to fall by at least 5.6%. Combined with the reduction in productivity caused by ...