World sugar prices are rising amid heatwaves in Brazil but continue to fall in Ukraine

Published 2024년 9월 19일

Tridge summary

Sugar stock prices have surged this week due to anticipated dry and hot weather in Brazil's sugar-producing states, São Paulo and Mato Grosso, which is expected to decrease sugar cane yield. This weather condition, coupled with the strengthening of the real against the dollar and increased oil prices leading to higher ethanol prices, has caused a 6% decrease in sugar production in the Central-South region in the second half of August compared to the previous year. Conversely, sugar prices in Ukraine have plummeted due to increased harvesting and prospects of a good harvest, alongside restrictions on sugar exports to the EU.

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

Original content

Sugar stock prices continued to rise this week on forecasts of dry and hot weather in Brazil's sugar-producing regions. On the London Stock Exchange, October white sugar #5 futures for the week rose 6.7% to a 5.5-month high of $555/t (+10% for the month), and cane sugar #11 rose 13, 7% to the highest level since September of $21.16/lb or $466/t (+17% for the month). According to forecasts, dry and hot weather will prevail in the states of São Paulo and Mato Grosso in the next two weeks, which will reduce the yield of sugar cane. In August, the heat in the country led to severe fires that damaged up to 5 million tons of cane in the main sugar-producing state of São Paulo. The strengthening of the real against the dollar to a 4-week high also supports the quote as it hampers sugar exports from Brazil. Rising oil prices will lead to higher ethanol prices and lower cane sugar production. According to the Unica association, in the second half of August, sugar production in the ...

Source: Graintrade