Sugar declines on the global market with high dollar and possible resumption of exports by India

Sugar futures contracts fell again on international exchanges, reflecting the depreciation of the real against the dollar and news that India could resume exports of up to 2 million tons of the commodity in 2025, if the government authorizes the transactions. Since the 2022/23 harvest, Indian mills have been prohibited from exporting. The dollar reached a new record yesterday, even after interventions by the government and the Central Bank. According to analysts, the appreciation of the US currency encourages Brazilian mills — Brazil is the world's largest producer and exporter of sugar — to fix their production more, increasing global supply and putting even more pressure on prices. Deepak Ballani, director general of the Indian Sugar Mills Association, told Reuters that “supply appears to be in a better situation than initially expected, which is why the government should allow exports of at least 1 million to 2 million tonnes.” Also according to the agency, in 2022, India, the ...