Analysis Sugar
Pressure on global sugar prices continues
The sugar prices of ICE London and New York have been under pressure for some time now in November. The prices of New York and London are dropping towards the level of mid-September.
The raw sugar contract of New York was quoted at $466.72 per ton yesterday, the white sugar contract of London was quoted at $538.20 per ton.
The current pressure contrasts with the report from the Food and Agriculture Organization (FAO) about rising sugar prices in October. It points to concerns about the sugar production expectations for the market year 2024/25 in Brazil, after a longer period of dry weather. Rising oil prices in October could also motivate Brazilian processors to produce ethanol from sugarcane, rather than sugar.
The latest figures from Brazil's Unica showed much less sugar production. In the last two weeks of october, 24.3% less sugar was produced than the same period last year in Brazil's main production region. Since the beginning of the season, production was slightly above last season's level. Aditionally, sugarcane processing ended op 21.6% lower in the two last weeks of october, but after all 0.9% higher from the beginning of the season.
