In US and UK, sugar jumps more than 2% this Wednesday on the NY and London stock exchanges amid signs of global shortages

Sugar

United States

United Kingdom

Published Mar 2, 2023

Tridge summary

Sugar futures contracts soared on the New York and London stock exchanges this Wednesday (1st) amid signs of global scarcity, in addition to financial and information from origins, with India, which faces the impact of climate on the crop. The most traded month of raw sugar on the New York Stock Exchange rose 2.49% to 20.57 cents/lb, with a high of 20.65 cents/lb and a low of 20.04 cents/lb. In London, the first contract jumped 2.40% on the day, at US$ 575.90 a tonne. After falling the day before, futures contracts for sugar rose again this Wednesday with the main support of fundamentals. There are major concerns related to the global offer of the sweetener, according to external agents. "Signs of global sugar shortages are bullish for prices. 11,551 contracts, or around 587,000 tonnes of sugar, were delivered to settle the March 2023 ICE sugar contract that expired on Tuesday.

Original content

This was well below of the 1.34 million t required", highlights Barchart. Furthermore, this was the lowest volume for a March contract since 2013, a clear sign of tight supplies. In fundamentals, attention turns to India, which has faced the impact of climate. However, an official at one of the country's biggest sugar and ethanol makers said the country could export more than the forecasted quota. Read more: + India may export more sugar in 2022/23, says major producer In addition, oil rose this afternoon, while the dollar depreciated against the real, which tends to discourage exports. Crude oil oscillations have a direct impact on the mills' decision for sugar or ethanol. Market operators are also following the recent decision by the Brazilian federal government to resume federal taxes on fuel. In addition, there are expectations with the 2023/24 crop in the Center-South. Read more: + Ethanol industry celebrates federal tax differential compared to gasoline in Brazil INTERN ...

Source: NoticiasAgricolas