Sugar Prices Weighed Down By An Increase In Brazil’s Sugar Production
Oct NY world sugar #11 (SBV23) on Monday closed -0.36 (-1.52%), and Oct London white sugar #5 (SWV23) closed -5.20 (-0.76).
Sugar prices Monday posted moderate losses, with NY sugar falling to a 1-1/2 week low and London sugar dropping to a 1-week low. Sugar prices have been under pressure since last Thursday when Conab raised its Brazil 2023/24 sugar production estimate to 40.9 MMT from an April forecast of 38.8 MMT as favorable weather conditions boosted sugarcane yields.
In another bearish factor, Unica on August 10 reported that Brazil Center-South sugar output in the second half of July rose +11.3% y/y to 3.681 MMT and that sugar output in the 2023/24 crop year through July rose +19.8% y/y to 19.167 MMT. Also, 48.62% of the crushed sugarcane was used for sugar production this year, an increase from 44.34% last year.
Sugar prices were undercut when India’s Food Ministry on August 4 said the country’s sugar stocks were sufficient and stood at 10.8 MMT at the end of July, dampening speculation that India might curtail sugar exports.
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