Sugar: With an intensified downward trend, the March/25 NY contract approaches 21 cents/lbp

Published Nov 13, 2024

Tridge summary

Sugar futures prices have been closing lower for the fourth consecutive session on the New York and London stock exchanges, with the March/25 NY contract approaching 21 cents/lbp. This downward trend is attributed to heavy rains in Brazil's Center-South and the depreciation of the real against the dollar. The international market anticipates improved sugarcane production due to the rainfall. Additionally, the conclusion of harvests in Europe and the strong US currency are expected to increase the European Union's exportable surplus. In the Brazilian domestic market, there might be pressure to reduce sugar supply due to a shift towards ethanol production.

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

Original content

For the fourth consecutive session, sugar futures prices closed lower on Wednesday (13) on the New York and London stock exchanges. After this new drop, the March/25 NY contract moved away from 22 cents/lbp and is now approaching the support of 21 cents/lbp. According to Maurício Muruci, an analyst at Safras & Mercado, a downward trend that had persisted for four weeks has intensified in recent days, which caused the recent reductions. According to him, there was an overlap of downward vectors in the short and medium term, formed by the climate in Brazil and the exchange rate. Muruci highlights that the rains this week in the Center-South of Brazil were very heavy, and the international market interpreted this as positive for sugarcane production in the country, both for the remainder of the current harvest and for the next one, which begins in April 2025. Also due to weather interference, the analyst states that the Brazilian off-season should be within normal limits. Until last ...

Source: NoticiasAgricolas