Last week, prices for May world sugar No. 11 in New York (SBK24) closed lower by -0.43 (19.82; -2.10%). At the same time, May London white sugar ICE No. 5 (SWK24) ended trading with a decline of -13.90 (589.20; -2.21%).
This morning, sugar prices cautiously declined: sugar in New York reached a 13-1/2-month low, and in London reached a 13-month low, according to the company's information.
An increase in sugar production in Brazil led to a decrease in prices. Unica reported that sugar production in the Center-South region of Brazil in the second half of March was 183,000 tons, which is 9% more than last year. In addition, sugar production in Brazil in March of the 2023/24 marketing year increased by 25.7% compared to the previous year, reaching 42.425 million tons. Brazilian sugar mills increased sugarcane processing volumes to produce more sugar and less ethanol. This year, mills processed 48.87% of the total sugarcane amount for sugar production, compared to 45.86% last year.
The depreciation of the Brazilian real exchange rate (^USDBRL) also negatively impacts sugar prices. On Monday, the real reached a 6-1/4 month low against the dollar. The weakness of the real stimulates export sales by Brazilian sugar producers.