Two months after the beginning of the sugarcane harvest, the Indian sugar market is difficult to generate ease

Published Dec 8, 2022

Tridge summary

The sugar market is experiencing confusion due to conflicting supply information, particularly from India, attempting to drive the global market towards better supply. However, the proposed upward pressure is losing steam, with New York futures failing to maintain support above 1%. This is attributed to local producers' new understanding of a 7% drop in Brazil's sugarcane production due to adverse weather conditions, a factor that was previously unnoticed. India's proposal of problems in the Thai crop, another major source, is questioned for its accuracy. The situation is critical as the market relies on the assumption of ample supply, with concerns that the actual numbers may be revised downward, as seen in the previous harvest.

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

Original content

The sugar market has been confused since this Monday morning (5) with information about India's supply, trying to exert upward pressure on a global scenario that confirms better supply. By Giovanni Lorenzon But, as all the news coming from the main Brazilian competitor deserves some discount, especially the bullish ones, the New York futures are already losing the support seen before, of more 1% – it is at more 0.90%, 19.66 c /lp (13:50 GMT). Local producers have only now “discovered”, with the 22/23 harvest going into just over two months, that there should be an average drop of 7% in production due to lower sugarcane productivity. The very hot summer and then excessive rainfall would be the causes of the damaged crop, according to reports. Again, just now noticed. Analyst Maurício Muruci, from Safras & Mercado, confirms that none of these points drew attention before, even from local and international meteorological institutes. With the information that the next Brazilian ...

Source: Canaonline