In US and UK, sugar retreats in NY and London this 5th with exchange rate pressure and profit-taking
Sugar
United Kingdom
United States
Published Mar 3, 2023
Tridge summary
Sugar prices fell moderately to significantly this Thursday (02) on the New York and London stock exchanges. After rising the day before, the market was impacted by profit taking, but follows the exchange rate and data from Brazil. On the other hand, the crop in India, impacted by the climate, concerns operators. The most traded maturity of raw sugar on the New York Stock Exchange fell 1.26%, to 20.31 cents/lb, with a high of 20.62 cents/lb and a low of 20.20 cents/lb. In London, the first contract fell 0.54% on the day, at US$ 572.80 a tonne. After skyrocketing on the eve amid signs of global scarcity, in addition to the financial, the sugar market has fallen since this Thursday morning with a natural movement of profit taking. The exchange rate contributes to the scenario. The appreciation of the dollar against the real this Thursday tends to encourage commodity exports, but weighs on sweetener prices.
Original content
On the other hand, oil was operating with slight gains on foreign exchanges and limited losses. Furthermore, in terms of fundamentals, the market is optimistic about the 2023/24 crop in the Center-South region of Brazil, which should be very positive with the help of the weather. However, there are several concerns about India due to adverse weather. More than two dozen mills in the state of Maharashtra, India's main sugar producer, had stopped crushing cane by the end of February. "Dealers said the market remains focused on production prospects in India, with prices having the potential to rise further if the prospects weaken further following the adverse weather in Maharashtra state," Reuters said. INTERN MARKET The sugar market has fluctuated more significantly in recent days, but business has been slow. On the last day of trading, the CEPEA/ESALQ Indicator for sugar, Icumsa color 130 to 180, São Paulo market, was traded at R$ 131.31 per 50 kg bag, ...
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