US: Raw sugar futures hit six-year high on ICE

Published 2023년 2월 1일

Tridge summary

Raw sugar futures on ICE reached a six-year high due to concerns about tight supply, driven by a worsening production outlook in India and potential reduced production in Brazil. India's expected sugar production for 2022/23 is down 7% from the previous forecast, and Brazil's ethanol profitability could lead to lower sugar production. This, along with a projected global sugar deficit for the 2023/24 season, has led to an increase in sugar prices, with the March raw sugar delivery closing up 2.6% at 21.76 cents a pound, and the March white sugar contract rising 2.1% to $580.70 per tonne.

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

Original content

Raw sugar futures traded on ICE hit a six-year high on Tuesday, 31, due to ongoing concerns about tight supply, highlighted by a worsening production outlook in India. Raw sugar for March delivery closed up 0.55 cents, or 2.6%, at 21.76 cents a pound, after reaching its highest level since the end of 2016 at 21 82 cents. India, the world's second-biggest exporter of sugar, is expected to produce 34 million tonnes of the sweetener in 2022/23, down 7% from the previous forecast, a top trade body said. Traders said sugar prices were being boosted by this production outlook, along with concerns that top exporter Brazil could also produce less if its energy policy improves ethanol's profitability. Brazil's finance ministry said it expects federal fuel taxes to be reinstated in March, which would benefit ethanol. A ...

Source: Novacana