Sugar closes lower again with prospect of greater global supply

Sugar prices on the New York and London stock exchanges closed lower due to an improved global supply outlook. Indian sugar production is expected to increase to 34-35 million tons, and the government may authorize exports if the surplus exceeds 3 million tons. However, the country is highlighting a production deficit of 15 million tons due to a monsoon delay. The March/25 contract on the New York Stock Exchange fell 0.08 cents, closing at 19.65 cents/lbp, while the May/25 contract fell 0.10 cents, trading at 18.27 cents/lbp. Prices showed a slight recovery at the close on the London Stock Exchange.

Sugar prices closed lower again this Friday (03), on the New York Stock Exchange. In London, the variations were mixed, but mostly negative as well. According to Barchart, prices are moderately lower due to an improved global supply outlook. In an interview with Notícias Agrícolas this Friday, Maurício Muruci, an analyst at Safras & Mercado, pointed out that when sugar prices in New York tend to recover, they will approach 20 cents/lbp, but will not test this value and will fall again towards 19 cents/lbp. Therefore, he states that prices are anchored along with this low of the last six months, which is 19 cents/lbp. Another detail he points out is that India will have a harvest of 34 million to 35 million tons in this 24/25 season, compared to 33 million in the previous one. At the end of December, as Muruci reinforced, the Indian government said it could authorize exports if the surplus exceeded 1 million tons, while the USDA estimates that it will exceed 3 million tons. In ...