US: Better export sugar at current price before India's reality and Brazil's crop hit New York

Sugar

Brazil

India

United States

Published Feb 2, 2023

Tridge summary

At least three things need to be considered in relation to the recurring news about the potential reduction of India's external sugar supply. The government's ban on limiting shipments ends up not being complied with, as happened last year. The highs of the commodity in New York, from this angle, will be returned when the market sees that the country's mills have gained rights to extrapolate the quota.

Original content

At least three things need to be considered in relation to the recurring news about the potential reduction of India's external sugar supply. By Giovanni Lorenzon The government's ban on limiting shipments ends up not being complied with, as happened last year. The highs of the commodity in New York, from this angle, will be returned when the market sees that the country's mills have gained rights to extrapolate the quota. The movement will still end up coinciding with the arrival of the new Brazilian crop. Therefore, according to this analysis by Maurício Muruci, from Safras & Mercado, it is better for the sugar industries to set exports in the current window for Chicago, above 21 cents per pound, before prices fall beyond the moments of making profits, like the one on the screen this Wednesday (1). What is happening is that the Indian food industries have triggered this alert that there could be a lack of sugar in the domestic market. And the group of plants, embraced by Isma, ...

Source: Canaonline