Hedgepoint updates global sugar balance and trade flows

Hedgepoint Global Markets Sugar and Ethanol Analyst Lívea Coda discusses the scenarios for the markets of Brazil, India, Thailand, the European Union and the United Kingdom, Mexico, the United States, Guatemala, Ukraine, Russia and China in the Global Sugar and Trade Flow Balance. The sentiment in the sugar market has shifted to a more bullish outlook due to adverse weather conditions and fires in Brazil's Center-South region. Europe, Central America and Thailand are expected to contribute more to the international market. India's sugar exports are estimated at 1.5 Mt, given the favorable parity. Brazil is expected to produce around 610 Mt of cane and approximately 39.8 Mt of sugar. The Center-South region could export 31.5 Mt of sweetener this season, with summer rainfall being a critical factor. Ethanol prices remained low, lagging behind sugar prices due to drought conditions and recent fires in the region making it difficult for mills to achieve desired sugar mix levels, resulting in higher-than-expected ethanol production.