Sugar prices poised to rule lower this quarter despite prices topping 15 US cents a lb
Global sugar prices climbed above 15 US cents per pound on concerns over a potential supply deficit. While El Niño and geopolitical risks support prices, some analysts expect weaker prices in coming months due to easing tensions and stronger-than-expected global sugar supplies.
Global sugar prices topped 15 US cents a pound on InterContinental Exchange, New York, on Monday as traders feared the market could face a deficit. However, a few analysts project a fall in global sugar prices during the current quarter and the next due to easing geopolitical tensions and stronger-than-expected supplies.
On the other hand, the ongoing El Nino weather and renewed geopolitical tensions pose risks to production and supplies, they said. On Tuesday, October sugar contracts in New York were quoted at 15.10 cents per pound ($331/tonne). In London, white sugar ruled at $475.50 a tonne for October delivery.
Covrig Analytics pegged the sugar deficit at 3 lakh tonnes compared with its earlier projection of 1 lakh tonne surplus. Another analytical firm, Green Pool Commodity Specialists, has pegged the deficit at 3.3 million tonnes (mt) from an earlier estimate of 1.76 mt.
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Source : The Hindu Business Line
