World market - Latest Sugar News - Incubator

World sugar prices in New York and London continue to fall due to increased production in Brazil. In New York, the price has decreased by 0.22, and in London by 10.70. Sugar production in Brazil has increased by 84% to 1.843 million tons.

Wildfires on sugarcane plantations in Brazil have had a negative impact on the harvest. It is expected that they have destroyed up to 5 million tons of sugarcane in the state of São Paulo.

As a result, sugar prices have risen by 4.2%, causing concern in the market. The fires will exacerbate issues with processing sugarcane due to the damages incurred.

Prices for sugar are rising due to fires and drought in Brazil. The harvest has been affected, and raw sugar futures have reached a 16-year high. The company has lowered its production forecast due to fires that have affected up to 450,000 hectares. Processing may be suspended by October. The situation also affects coffee and cocoa.

Prices for sugar have remained stable due to low demand and fluctuations in the exchange rate of the ruble. High global prices and inflation may stimulate price growth, but excess production and high rates keep prices in check.

Sugar exports have decreased, but Russian raw materials have found demand, compensating for the losses. The total export volume in November amounted to 125 thousand tons.

In November 2024, the FAO Food Price Index rose by 0.5% to 127.5 points. The increase was driven by rising prices for oil and dairy products, overcoming the decline in prices for meat, grains, and sugar.

The sugar price index decreased by 2.4% to 126.4 points, with the decline attributed to sugar processing in India and Thailand, as well as the harvest in Brazil after the rains.

Prices for sugar have risen: SBK24 futures closed at +0.27 (19.54; +1.40%), ICE №5 SWQ24 rose by +9.60 (568.90; +1.72%). Conab reduced the forecast for sugar production in Brazil for the 2023/24 season, but increased the forecast for ethanol production.

Trading of July sugar in New York ended with a decrease, caused by the strengthening of the dollar and a forecast of increased production in Brazil.

At the same time, in India, there is a reduction in sugar production due to the closure of factories.

The world sugar No. 11 in New York rose by +1.43%, closing at 19.13, while London white sugar ICE No. 5 increased by +0.81%, reaching 560.30.

Sugar prices continue to rise due to unstable weather conditions in Brazil, India, and Vietnam.

At the March trading platform in New York, the price of sugar SBH25 increased by 0.14 (22.22; +0.63%). On the ICE London exchange, the price of sugar SWZ24 increased by 5.70 (576.90; +1.01%) due to the expected reduction in rains in the Central-South region of Brazil. Showers are predicted to be in lesser volume.

The ISO conference highlighted a growing interest in sustainable fuels due to the pandemic. High pollution levels affect COVID-19 mortality. The demand for ethanol is increasing, and bioethanol production could grow tenfold. Sugar consumption is decreasing, impacting the market and exports. According to Plinio Nastari's estimates, sugar production in Brazil is expected to reach a historical record.

Prices for the world sugar No. 11 have decreased by 3.59%, and for London white sugar No. 5 by 2.44%. The reason is the forecast of rain in Brazil, which eased concerns about drought and stimulated futures sales.

The Brazilian agency Conab predicts a 32% increase in sugar production, reaching 39.33 million tons. Ethanol production is expected to decrease by 14% to 30.56 billion liters. Sugar exports have increased by 70%.