Sugar: Reduction in rain in Brazil causes NY, United States and London, United Kingdom to rise sharply this 3rd

Published Feb 28, 2024

Tridge summary

Concerns about reduced sugarcane production in Brazil's Center-South region due to decreased rainfall have led to a significant increase in sugar futures prices on the New York and London stock exchanges. Tereos predicts the new harvest could fall below 600 million tons, a decrease from 660 million in the previous cycle. However, positive production signs from Thailand are helping to stabilize prices. Meanwhile, the physical sugar market has seen some decline due to reduced demand.
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 prices ended this Tuesday (27th) with a significant increase on the New York and London stock exchanges. The market was supported by concerns about supply, as rainfall has reduced in the Center-South, the country's main hub. The most traded maturity of raw sugar on the New York Stock Exchange appreciated by 2.35%, quoted at 22.68 cents/lb, with a maximum of 22.95 cents/lb and a minimum of 22.16 cents/lb. In London, the first contract rose 1.15%, to US$631.70 per ton. After starting the day close to stability, sugar began to rise sharply abroad this Tuesday afternoon after concerns about the supply of the sweetener increased, as rainfall remains low in areas of the country. "Dealers said the market continued to receive support from concerns that reduced rainfall in Brazil's important Central-South region would lead to a decline in sugarcane production in the upcoming 2024/25 season," Reuters highlighted. Tereos, for example, estimated this week that the new harvest in ...
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