Sugar closes with new low and losses this week exceed 5% in NY and London

Sugar prices have experienced a significant decrease for the fourth consecutive week, with drops of 5.37% in New York and 6.21% in London due to an optimistic production outlook in Brazil and Asia. The fall in prices has surpassed initial predictions, with the March/25 contract on the New York Stock Exchange reaching 18.22 cents/lbp, a decrease of 1.03%. Similarly, the London Stock Exchange also witnessed widespread declines. In contrast, the Brazilian domestic market has seen slight price increases in various sugar forms.

Sugar prices closed this Friday (17) with the fourth drop recorded this week. With the new losses, in the weekly comparison, prices recorded a drop of up to 5.37% among the main contracts on the New York Stock Exchange and 6.21% on the London Stock Exchange. The losses are motivated by a good supply outlook for both Brazilian and Asian production. According to sugar and ethanol analyst at Safras & Mercado, Mauricio Muruci, 17 cents/lbp on the New York Stock Exchange is now a target; the question is whether it is too early to talk about this value. As he points out, after the estimated sugarcane production in the Center-South of Brazil for 2025/26 went to 605 million tons due to last year's fires, 630 million tons are now being considered, which could even exceed this total. Furthermore, according to him, Asia as a whole should see an increase in production due to good monsoon rains. Muruci stated that since November, in view of the recovery of sugarcane fields in Brazil, he had ...