Global sugar prices plummet with greater supply and weak demand

Published 2024년 5월 10일

Tridge summary

Challenges in sugar production in India and Thailand have led to a surge in excess supply and decreased demand, particularly from China, causing a drop in global sugar prices. Despite expectations of lower production in these countries, the market has remained stable due to higher than anticipated supply. Factors such as high monsoon rains and ending stocks in India, and crushing numbers in Thailand, have contributed to the oversupply. Meanwhile, growing domestic production in China has reduced the country's appetite for imported sugar, further impacting prices. This situation indicates a potential period of lower prices and volatility in the sugar market, dependent on the balance between global supply and demand.

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

Original content

Despite news of challenges in sugar production in India and Thailand, the impact on prices has been limited due to excess supply and weakening demand, especially from China, the main global importer. The drop in prices is also attributed to increased production in some countries, as well as a drop in market interest in general. Last week, the sugar market began to be active due to expectations surrounding the May contract. Monday (29/04) saw a slight increase in prices following rumors that the Pakistan government might deny an export quota, but the following day the situation reversed after the Pakistan Sugar Mills Association refuted these rumors. Thus, the delivery of the May contract ended with a total of 1.67 million tons, an increase of 73% compared to the average of the last eight years, with Brazil as the main supplier. According to Lívea Coda, Sugar and Ethanol analyst at Hedgepoint Global Markets, the July contract failed to reach May price levels, likely due to high ...

Source: Portal Do Agronegocio