Sugar closes with another drop globally; analyst highlights production in Asia as another factor of decline

International sugar prices have seen a decline this week, with the March/25 contract on the New York Stock Exchange dropping by over 5%. This decrease is attributed to several factors, including an anticipated increase in production in Thailand, suspension of imports by China, exceptional harvest results in China, Indonesia's plan to achieve food self-sufficiency by 2027, and rumors of potential exports from India. Additionally, the devaluation of the Brazilian real has also impacted sugar prices. Brazilian producers are quickly selling futures contracts due to the currency's lowest value against the US dollar in history.

Sugar prices closed this Wednesday (18) with new drops in international markets, extending the losses recorded throughout the week. On the New York Stock Exchange, the main contracts fell by around 1%, while in London the losses approached 0.8%. With this, the accumulated decline this week in NY alone has already exceeded 5% in the March/25 contract, the most traded. In New York, the March/25 contract fell by 0.19 cents/lbp (-0.96%), closing at 19.65 cents/lbp. May/25 fell by 0.25 cents/lbp (-1.35%), quoted at 18.28 cents/lbp. July/25 fell 0.22 cents/lbp (-1.22%), trading at 17.84 cents/lbp, while October/25 fell 0.21 cents/lbp (-1.17%), trading at 17.81 cents/lbp. On the London Stock Exchange, March/25 fell US$3.40 (-0.66%), closing the day at US$511.60/ton. May/25 lost US$4.20 (-0.81%), trading at US$512.70/ton. August/25 fell US$4.60 (-0.91%), trading at US$501.70/ton, while October/25 fell US$4.00 (-0.80%), closing at US$495.40/ton. According to Lívea Coda, coordinator of ...