According to Barchart, March futures for world sugar No. 11 closed in New York (SBH24) down 0.53 points (-1.91%), while December contracts for London white sugar ICE No. 5 (SWZ23) ended trading down 13.00 points (-1.72%).
Commodity prices hit a one-and-a-half-week low on Tuesday. The CEO of Raizen - the largest sugar and ethanol producer in Brazil - sparked a massive sell-off in sugar futures. The top manager announced plans to increase sugar production volumes due to declining profitability of ethanol production. Investment bank BTG Pactual noted that the cost of producing ethanol from corn in Brazil is 16% lower than from sugarcane, which could stimulate an increase in sugar production as producers are increasingly opting for corn in ethanol production.