Sugar prices rise amid reports of crop problems in India

Published Dec 30, 2024

Tridge summary

The sugar market is experiencing a surge due to production issues in India and Brazil. India's potential export surplus may not materialize due to heavy rainfall following a drought, which could result in the first domestically consumed sugar in eight years. This, coupled with a decrease in Brazilian sugarcane processing, has led to an increase in market prices. Additionally, the quality of raw materials in Brazil has also seen a decline due to recent rains, affecting milling operations.

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

Original content

On Monday morning (30), the sugar market is trading higher, driven by data indicating problems in Indian production. The March/25 contract is quoted at 19.47 cents per pound, while May/25 is trading at 18.03 cents. India, which had indicated the possibility of exporting a surplus of sugar if ethanol blending requirements were met, is now reviewing this decision. The country is facing excessive rainfall after a long period of drought, a situation that could lead to a reduction in sugar production to levels below domestic consumption for the first time in eight years, according to farmers and industry authorities. In addition, the market reflects the Brazilian harvest, which, according to the latest report by UNICA (Sugarcane and Bioenergy Industry Union), showed a decline in sugarcane processing. In the second half of November, mills in the Center-South processed 20.35 million tons, compared to 24 million in the same period of the 2023/2024 harvest, which corresponds to a decrease ...

Source: NoticiasAgricolas