Sugar falls in NY, United States and London, United Kingdom this Wednesday with profit taking, oil and data from Unica
Sugar
Brazil
Published Mar 28, 2024
Tridge summary
Sugar futures saw a decline on Wednesday in both the New York and London stock exchanges, driven by a combination of profit-taking, a slight decrease in oil prices, a stronger dollar, and weak gasoline demand in North America. The most traded raw sugar contract in New York dropped by 0.89%, and in London, it fell by 1.19%. This downturn comes after two days of gains fueled by supply concerns and potential import restrictions from Mexico. However, a report from Unica highlighted a 313% increase in sugar production in Brazil's Center-South region for the first half of March compared to last year, contributing to the market's weakness. Despite this, sugar prices in the São Paulo spot market remained stable due to supply constraints as the 2023/24 off-season comes to an end.
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 ended this Wednesday's session (27) with a moderate to significant drop on the New York and London stock exchanges. The market felt pressure in the morning from a profit-taking movement, in addition to following oil and Unica data. The most traded maturity of raw sugar on the New York Stock Exchange lost 0.89% on the day, quoted at 22.19 cents/lb, with a maximum of 22.39 cents/lb and a minimum of 21.76 cents/lb. In London, the first sweetener contract fell 1.19%, trading at US$645.60 per ton. The sugar market lost strength in this Wednesday's session, after two consecutive advances, in the face of a natural movement of profit-taking on the stock exchanges, in addition to following the slight drop in oil with the strengthening of the dollar and weak demand for North American gasoline. The rise in oil prices directly impacts the production decision of plants in the Center-South. At the end of the morning, the Sugarcane and Bioenergy Industry Union (Unica) announced ...
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