Brazil: Perspective of world deficit above 1 million tons makes sugar prices hit a 6-year high on ICE Futures in the US and in the UK

The international sugar market closed the last business day of January hitting a six-year high on ICE Futures in New York, with the perspective that the commodity ends the year with a deficit of just over 1 million tons, reversing the three years followed by surplus. The new deficit outlook was presented yesterday in an analysis by the Green Pool. The fall in production of the sweetener takes into account problems with the second largest producer of the commodity in the world, India, which should produce, according to an analysis by Reuters, around 34 million tons of sugar in the 2022/223 harvest, "a drop of 7% compared to the previous forecast". Another factor that has been weighing on the international sugar market is the possibility of the return of taxes on fuels in Brazil, which would favor the production of ethanol, to the detriment of sugar. Given this scenario, the New York and London stock markets closed at a sharp high yesterday. At ICE in NY, the March/23 lot was ...