World: Funds exchange sugar for cocoa in strategic flight

Published 2024년 2월 26일

Tridge summary

The sugar futures market in New York experienced another week of decline, with the May/24 contract closing at 21.79 cents per pound, a drop of 80 points. This was despite a weaker real against the dollar and was influenced by factors such as increased sugar production in India and reduced production estimates in Thailand. Speculator funds also liquidated a large part of their long positions in sugar. Market volatility in December led to several operations transforming into effective sales hedges, with the market falling more than 600 points from its peak.

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

Original content

Another week of decline in the sugar futures market in NY. The contract expiring in May/24, – as March/24 expires next week – closed Friday at 21.79 cents per pound, an accumulated drop of 80 points in the week, equivalent to almost 18 dollars per ton. The remaining months of trading until October 2026 fell by an average of 53 points, just under 12 dollars per ton. Despite a weaker real against the dollar this week, this was not enough to offset the fall in the price of sugar in NY. Thus, the values in reais per ton for the average of the 2024/25 harvest in the Center-South fell by almost 70 reais per ton. Without much fanfare, India is producing more sugar than last year. The latest figures released by ISMA (Indian Sugar Mills Association), the main association of Indian mills, show that the country has so far produced 3.7 million tons of sugar, 4% above the same period last year. We will be following closely. READ MORE >BP Bunge obtains the Green Energy Seal for the fifth ...

Source: Jornalcana