Source: Zhitong Finance
Sugar futures prices in New York rose as signs of tightening supply boosted the price of sugar, which fell to its lowest level in more than a year last week.
Sugar futures prices in New York rose as signs of tightening supply boosted the price of sugar, which fell to its lowest level in more than a year last week.
Brazil's drier weather over the next 6 to 10 days will put pressure on crops, and Brazil's National Supply Company last week lowered its forecast for 2023-24 production, according to Maxar Technologies' forecast. Furthermore, the Thai government said that due to droughts and rising costs, Thailand's latest season's sugar cane production fell by more than 12% compared to the previous year.
Raw sugar futures fell 3.1% last week, partly due to the weakening Brazilian real (which encouraged more exports) and optimism about Indian production, as strong monsoon rainfall is expected in India. The fund manager turned net bearish for the first time since 2022.
New York sugar futures rose 2.2% on Monday
Hightower Report said in a report that “after a rough start in April,” prices have begun to benefit from some bullish supply and demand news. Despite this, traders will keep a close eye on the Brazilian real's trend, “as the real regains a downward trend, which may trigger a similar trend in sugar.”