Overview of current prices and prospects in the world sugar market

Published 2023년 5월 18일

Tridge summary

The article explains the increase in sugar prices across major exchanges, attributed to a decrease in supply due to lowered production in India, China, Thailand, and the EU, and a late harvest start in Brazil. The rise in prices is also linked to factors such as rising oil prices and a strong Brazilian real. The market's future direction is influenced by the potential impact of El Niño on crops in India and Thailand, with the risk of higher prices if crops are damaged by unfavorable weather.

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

Original content

In the future, the price vector will be influenced by the El Niño phenomenon, which may have an adverse effect on harvests in India and Thailand The cost of raw sugar (sugar No. 11) on the Intercontinental Exchange (ICE) in the United States increased by 5.5% over the month and amounted to $570.6/t as of May 17. At the London International Financial Futures and Options Exchange (LIFFE), white sugar rose by 3.7% over the month to $706.7/t. On the Zhengzhou Stock Exchange (ZCE, China), quotations increased by 2.0%, the cost of sugar amounted to $1,008.0/t. However, compared to the end of April, when another price peak was reached on the world market, by mid-May they slightly decreased. According to the FAO, the average price of sugar, which has been increasing for three consecutive months, in April reached its maximum since October 2011, and compared to the March level, it was 17.6% more. The positive price dynamics is due to a reduction in supply on world markets in the 2022/2023 ...

Source: Specagro