Mumbai, 17 May (Commoditiescontrol): Sugar futures on the Intercontinental Exchange (ICE) dropped to an 18-month low on Thursday, driven by robust production in Centre-South Brazil far surpassing last season's pace. The July delivery of raw sugar fell by 0.32 cents, or 1.7%, closing at 18.33 cents per lb after hitting an 18-month low of 17.95 cents. In London, the August ICE white sugar contract also declined, losing $6.10, or 1.1%, to close at $536.20 per metric ton.
Dealers attributed the bearish market sentiment to the strong start of the harvest in Centre-South Brazil. Sugar industry group UNICA reported on Wednesday that sugar production in this region totaled 1.84 million tons in the second half of April, up 84.25% from the same period last year. However, they noted that this increase partly reflects drier conditions and may not be sustained later in the season.
In other developments, Australia's largest sugar producer, Wilmar Sugar, announced on Thursday that strikes by its employees would delay the start of cane processing. Meanwhile, StoneX and S&P Global Commodity Insights have projected significant growth in Brazil's sugar output, estimating the 2024/25 production at 42.3 million tons.
Globally, the sugar market is experiencing shifts in production dynamics. Datagro forecasts a modest global surplus of 1.62 million metric tons for the 2024/25 season, a reversal from the previous season's deficit, driven by recovering production in Thailand and increased output forecasts from China. In India, the Indian Sugar and Bioenergy Manufacturers Association reported a 1.6% year-over-year decrease in sugar production as of April 30, adding complexity to the global supply outlook.
Market participants are closely monitoring these developments for potential impacts on trading strategies. Technical support for the July sugar contract is currently seen at 17.97 cents and 17.61 cents, with resistance levels at 18.67 cents and 19.01 cents.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
