Brazilian harvest has good development and puts pressure on sugar prices

The sugar futures market has seen price adjustments at the London and New York terminals due to positive reports from Brazil's sugar production. As reported by Unica, the sugar production for the 2024/25 crop year has increased by 15.7% year-on-year, reaching 14.2 MMT. The percentage of the 2024/25 sugarcane crop crushed for sugar has also increased to 48.72% from 47.69% last year. This accelerated production is bearing negatively on prices. In the domestic market, the price of sugar had slight drops on the last day of trading.

The sugar futures market ended trading this Thursday (11) with price adjustments at the London and New York terminals. The market reacted to the numbers from Brazil, released by Unica during the trading session. The Brazilian harvest takes place without any major problems and milling progresses. In London, the white type fell 0.91% and closed the day trading at US$574.40 per ton. In New York, the raw type fell by 1.92%, quoted at 19.43 cents/lbp. "Accelerated sugar production in Brazil is bearish for prices after Unica reported on Thursday that Brazil's sugar production for the 2024/25 crop year through June rose +15.7% y/y to 14.2 MMT", highlighted the latest analysis from the international website Barchart. Additionally, the percentage of Brazil's 2024/25 sugarcane crop crushed for sugar increased to 48.72% from 47.69% last year. The director of Sector Intelligence at UNICA, Luciano Rodrigues, explains that “the progress in crushing recorded so far is related to the anticipated ...