World market - Sugar Market and Sugar Industry: Overview and Trends - Incubator

Cona Haki warned that India may not export sugar in 2023-24 due to low production levels. This is a result of rainfall deficit, which will lead to price increases and inflation growth in global markets. September rains may provide some relief, but the harvest will decrease due to lack of rain in August.

The EU will reduce the import of Ukrainian wheat and sugar by 70-80% starting from July 1, 2025. New quotas are set: wheat - 1 million tons, sugar - 100 thousand tons. Ukrainian farmers are unhappy with this decision. Quotas for barley have been increased, as well as for poultry. Ukrainian exporters will start looking for new markets.

March futures for world sugar No. 11 dropped by 1.91% in New York, while December contracts for London sugar ICE No. 5 decreased by 1.72%.

The CEO of Raizen plans to increase sugar production due to less profitable ethanol production from corn in Brazil.

Forecasts of low sugar production levels in Cuba due to the economic crisis have caused difficulties for rum producers. Resumption of work is expected at only one of the 25 plants, and production volume will be significantly lower than the 2019 level. The decline began after the collapse of the Soviet Union.

Prices for sugar have decreased: July contracts on NY ICE have dropped to 16.04 ¢/pound, and August contracts on ICE London have decreased to $467.50 per ton due to falling oil prices. Oil has lost 7%, reducing ethanol production and increasing sugar supply.

The futures prices for sugar No. 11 in New York have decreased to 16.48 cents per pound (-1.14%), while the contracts for white sugar No. 5 in London have fallen to $467.80 per ton (-0.97%).

The reason for this is the increased estimate of sugar surplus in the global market to 4.2 million tons, which has reduced demand and prices.

According to Barchart, prices for May world sugar No. 11 in New York decreased by -0.61 (20.53; -2.84%), while prices for London white sugar ICE No. 5 dropped by -4.40 (609.00; -0.70%). In New York, sugar prices reached a monthly minimum, while in London they hit a three-week low.

Production in Thailand exceeded forecasts, which influenced the price decrease.

Prices for sugar have risen following recent losses: the May futures contract for sugar No. 11 in New York added +0.45%, while the white sugar contract in London increased by +0.59%. Conab reduced its sugar production forecast in Brazil for the current financial year by -2.6%.

On the New York Stock Exchange, the price of world sugar #11 fell by 0.26 to 19.36 (-1.33%), while on the London Stock Exchange, white sugar #5 decreased by 4.20 to 555.70 (-0.75%). This is due to the forecast of a sugar surplus in the global market next year, with an expected +182 thousand tons in 2024/25.

Prices for raw sugar on the NY ICE and ICE exchanges have increased due to the weak dollar value and a decrease in sugar production in Brazil. On the NY ICE, the price reached 17.70 cents per pound, on the ICE - $497.70 per ton.

The sugar market gap has widened due to forecasts of slowing exports from Brazil. The March contract has declined by 2.2% and significantly outperformed the May contract. A deficit is expected by the end of the year due to reduced crop yields in Brazil caused by drought.

Futures on NY Sugar #11 fell by 1.78%, closing at 17.13 cents per pound.

Prices for London white sugar decreased by 1.70%, reaching a 3.5-month low due to expectations of global supply growth.