Raw Sugar Extends Loss on Prospect of Higher Exports From India
Raw sugar futures extended their decline for a fourth straight session as India signaled it may allow additional exports beyond the previously approved 1.5 million tons. Prices fell to 14.39 cents/lb, pressured by India’s sharply higher output and ample global supplies, with futures already down 25% this year.
Raw sugar futures headed for a fourth day of losses, the longest streak in about two months, after major producer India said it may export more than planned this season.
The most-actively traded contract in New York fell as much as 2.5% to 14.39 cents a pound, the lowest in almost five weeks. Last month, India said it would allow 1.5 million tons of sugar exports this season to help ease a domestic glut. On Thursday, Food Secretary Sanjeev Chopra said the government may permit additional shipments to reduce stockpiles further. He also said it’s considering raising the minimum sale price.
The country’s sugar output from Oct. 1 to Dec. 15 increased by 1.7 million tons from a year earlier, a jump of almost 28%, according to the Indian Sugar and Bio-Energy Manufacturers Association. That aligns with a forecast from the US Department of Agriculture, which sees Indian production up 26% in the 2025-26 crop year, due to “favorable weather and increased planting area.” The country’s prior harvest was negatively impacted by the El Niño weather pattern.
Futures are down 25% this year. Prices have failed to sustain levels above 15 cents as “the market remains well supplied against lackluster demand,” according to a report from Claudiu Covrig, the lead analyst at Covrig Analytics.
Meanwhile, the Commodity Futures Trading Commission — which is releasing reports that were missed during the government shutdown period — said Wednesday that the net short speculative position for sugar had decreased. That indicates short covering, said Mike McDougall, an analyst at McDougall Global View.
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Source : Financial Post
