Pressure on global sugar market due to indications of increased production in Brazil

02-Jul-2024 11:58 AM

New York. Pressure on sugar futures prices in the global market remains intact due to indications of better production in Brazil, the major producer and exporter country.

The futures price of raw sugar for October delivery in New York Exchange fell by 0.10 cents per pound or 0.49 percent and the futures price of white sugar in London Exchange fell by $ 11.80 per tonne or 1.92 percent for August contract.

It is noteworthy that last week when fears were expressed about damage to the crop from red rot insect in India's most important sugarcane producing state Uttar Pradesh, the global futures price of sugar jumped to a high level in the last two and a half months. Export of sugar from India is banned indefinitely.

It is noteworthy that in the marketing season of 2021-22, the export of sugar from India had jumped sharply to 111 lakh tonnes and in the season 2022-23 also, the government had allowed the export of 61 lakh tonnes of sugar, the period of which expired on 31 May 2023. Since then,

commercial export of sugar has been stopped. According to the new report of UNICA - the apex body of the sugar industry in Brazil, during the current marketing season from 1 April to 15 June 2024, the domestic production of sugar increased by 14.4 percent to 109.50 lakh tonnes.

On the other hand, the exchange rate of Brazil's currency-Real against the US dollar fell to the lowest level in the last two and a half years. This time in Brazil, 48.88 percent sugarcane was used in sugar production, which was more than 47.24 percent last year.