Sugar: After new low, March/25 in NY returns to the lowest level in the last four months

Sugar futures on the New York and London stock exchanges experienced a decline of over 1% on Monday, with the March/25 contract on the New York exchange reaching its lowest value since December at 18.90 cents/lbp. This downturn is attributed to an improved supply outlook. Meanwhile, in the Brazilian market, as reported by Notícias Agrícolas, Leonardo Silvestre of the Arai Energy Group discusses the strategic opportunity to create a No Deliver Forward (NDF) contract at current prices due to potential export restrictions from Asia, as their high production costs may lead them to prioritize domestic markets. Concurrently, the Cepea Esalq indicator highlights slight increases in sugar prices in Brazilian markets, with white crystal sugar in São Paulo reaching R$ 159.78/bag.

Sugar futures on the New York Stock Exchange closed with losses of more than 1% on the New York and London exchanges, this Monday (13). As a result, the March/25 contract, the most traded in NY, lost support at 19 cents/lbp and ended the day with the lowest value since the first fortnight of last December. As Barchart explains, sugar prices are driven by supply. “Sugar prices retreated on Monday, with NY sugar recording a 4-month low in the nearest future [...] Over the past three months, sugar prices have been trending lower due to an improved outlook supply”, explains the portal. In New York, the March/25 contract fell 0.32 cents (-1.66%), closing at 18.90 cents/lbp. May/25 had a drop of 0.15 cents (-0.83%), quoted at 17.92 cents/lbp. July/25 also showed a reduction, closing at 17.60 cents/lbp, with a loss of 0.10 cents (-0.56%). October/25 was traded at 17.67 cents/lbp, a drop of 0.06 cents (-0.34%). On the London Stock Exchange, the falls were also significant. The March/25 ...