Brazil's sugar output decline puts pressure on Thai and Indian supplies

Published 2024년 10월 9일

Tridge summary

Sugar futures have reached their highest level since February 2024 due to concerns over crop damage in Brazil, the world's top sugar producer. This potential increase in production costs has traders scrutinizing other major producers. While Thailand's crop is expected to recover, flooding could delay harvesting. In India, ethanol production support may lead to restricted sugar exports. The International Sugar Organization predicts a larger deficit between production and consumption in the 2024/25 season, with Thailand's production estimated to increase despite September flooding risks. India's sugar production is projected to decrease, raising concerns about global supply.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Sugar futures rose to their highest since February in the third week of September 2024, as concerns about crop damage from wildfires, heat and drought in top producer and exporter Brazil threatened to push up the cost of groceries from soft drinks to candy and shifted traders’ focus to output in other major producers. The good news is that the crop in the world’s second-largest exporter, Thailand, is expected to recover in the upcoming 2024/25 season. However, floods in September have raised fresh weather risks, with concerns emerging that harvesting could be delayed if heavy rains continue. In the world’s second-largest producer, India, support for ethanol production means officials could extend restrictions on sugar exports. Tight global sugar supplies could push prices higher. The International Sugar Organization (ISO) in August 2024 forecast sugar production to fall short of consumption by 3.6 million tonnes in 2024/25, a larger deficit than the current season. Thailand’s ...

Source: Vinanet