The rise in the global sugar futures prices was halted due to the possibility of rain in Brazil.

03-Oct-2024 03:08 PM

New York. Sugarcane crop was being affected due to the dry and hot weather in the Latin American country Brazil for a long time, due to which the sugar futures prices were moving high and fast in New York and London exchanges, but now the possibility of rain has been expressed there, so the rise in sugar prices has been halted.

The futures price of raw sugar in the New York exchange for the March contract fell by 0.38 cents per ton or 1.65 percent and the futures price of white sugar in the London exchange for the December contract fell by $ 10.60 per ton or 1.82 percent.

Although the sugar futures opened with a rise in the initial phase, but now when rain was predicted in Brazil, the market started coming down and speculators / investors started selling long-range positions.

There is a severe drought situation in Brazil's most important sugarcane and sugar producing division- Central Southern region as well as in the northern states and there is a dire need of heavy rain there.

It has been predicted that there will be widespread rain in Brazil within the next six to ten days. Last week, the futures price of raw sugar in the New York Exchange jumped to the highest level in the last seven months. Due to the drought, there is a possibility of a decline in the production of sugarcane and sugar there.

As a result, there was an atmosphere of ups and downs in the prices of sugar for the last two weeks. Rabo Bank has reduced the sugar production estimate in Brazil's Central Southern region from 403 lakh tons to 393 lakh tons.

Due to extremely hot and dry weather, the incidents of fire have increased there. Due to fire in the most important sugar producing state- Sao Paulo,

about 80 thousand hectares of sugarcane crop was burnt due to which sugarcane equivalent to about 5 lakh tons of sugar was wasted. Here in India, the sugarcane crushing season has formally started from 1 October 2024.