Brazil: Sugar perspective of lower production in India sustains prices that close with a strong increase

Published 2023년 3월 6일

Tridge summary

On March 6, 2023, the market saw a significant increase in sugar prices across various platforms. In New York, on ICE Futures, raw sugar for May/23 and July/23 increased by 3% and 2.7% respectively. In London, on ICE Futures Europe, white sugar for May/23 and August/23 also saw a rise of 2.7% and 1.8% respectively. Additionally, Brazil's domestic market experienced a slight increase in crystal sugar prices. This increase is due to a strategy adopted by over two dozen mills in Maharashtra, India, to halt cane crushing earlier this season, leading to a decrease in sugar production. Despite this strategy, India's sugar production for this season has slightly increased by 1.8% year-on-year, reaching 25.8 million tonnes.

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

Original content

In New York, on ICE Futures, raw sugar, maturing in May/23, was contracted on Friday at 20.92 cents per pound, an appreciation of 61 points, or 3%, in comparison with the price of the Last day. The July/23 screen rose 50 points, trading at 20.25 cts//lb. The other contracts rose between 11 and 36 points. According to analysts interviewed by Reuters, "more than two dozen mills in Maharashtra stopped crushing cane until the end of February, almost two months earlier than last year, a senior state government official said". "So far this season, however, Indian mills have produced 25.8 million tonnes of sugar, up 1.8% year-on-year, the Indian Sugar Mills Association reported," the Reuters analysts noted. In London, on ICE Futures Europe, Friday was also high for all lots of white sugar. The May/23 maturity was contracted at US$ 588.40 a ton, an appreciation of US$ 15.60, or 2.7%, compared to Thursday's prices. The August/23 canvas rose $13.20, ...

Source: Portal Do Agronegocio