Scarce rains in the Center-South of Brazil drive a rise in sugar prices on international stock exchanges
Sugar
Brazil
Sustainability & Environmental Impact
Market & Price Trends
Published Mar 23, 2024
Tridge summary
Sugar futures contracts saw an increase on international stock exchanges due to concerns over severe drought in Brazil's main sugar producing region, the Center-South. The most liquid contract, due in May 2024, appreciated by 29 points to 22.06 cents per pound. StoneX revised its estimates, predicting a decrease in total sugarcane crushing from 622 million tonnes to 602 million. Sugar production in the Center-South region is also expected to drop to 42.3 million tons from the previously projected 43.1 million. Meanwhile, hydrated ethanol recorded its ninth consecutive increase in the Paulínia Daily Indicator.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
Sugar futures contracts closed higher on international stock exchanges on Thursday (21), driven by the lack of rain in the Center-South of Brazil, the main producing region of the commodity, and the review of the 2023/24 harvest. According to information released by the Notícias Agrícolas portal, concerns about excessive drought in Brazil have stimulated coverage of positions in sugar futures, based on forecasts of limited rain over the next week in the Center-South of Brazil, the country's main producing region. . At ICE Futures in New York, all raw sugar lots closed at a higher value. The most liquid contract, expiring in May 2024, was sold at 22.06 cents per pound, registering an appreciation of 29 points compared to the previous day's prices. The July/24 screen rose 31 points, reaching 21.78 cts/lb, while the other contracts fluctuated upwards between 15 and 32 points. StoneX announced drastic revisions to its estimates, forecasting total sugarcane crushing at 602 million ...
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