Analysis Sugar
Sugar prices decline while Brazil produces less sugar
The sugar production in Brazil was lower in the second half of November compared to last year. However, this did not result in a price increase. On the contrary, the sugar prices on the ICE in New York and London have decreased.
According to the Brazilian Unica, 3.7% less sugar was produced in the Central-Southern production region from April 1 to November compared to the same period last year, totaling 39.361 million tons of sugar. In the second half of November, production was significantly 23.1% lower than last year in the same period, at 1.084 million tons.
The sugar cane processing in the region was also 2.7% lower than last year since the beginning of the season, amounting to 602.9 million tons of sugar cane. Rainfall in Brazil has delayed sugar cane processing. On the other hand, the additional moisture in the soil provides hope for future harvests.
The answer to why the price increase is not happening can be found in the earlier expectations. Analysts report that the current lower figures for Brazil are not as bad as the market anticipated.
The Indian production is also lower than last year since the start of the 2024/25 season, with an 18% decrease in sugar production so far. Perhaps this news has led to the relatively small increase in sugar prices yesterday. Overall, the downward trend in sugar prices continues, apart from a few peaks.
Alex Jurvillier
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