Centre South Brazil The Brazilian crushing season which commenced in April has progressed at record pace as dry conditions have dominated CS Brazil for most of 2024. These conditions are a double-edged sword, on one hand prolonged dryness is aiding a very fast sugar cane harvest, crushing and export of sugar. However, on the other…
Market update summary The spot ICE11 raw sugar price peaked at 28.14 cents per pound in November 2023. A weak AUD through October-November 2023 saw forward sugar prices in Aussie dollar terms surge to multi year highs. Significant upward revisions to Brazil’s forecast sugarcane crop in late 2023 resulted in a large raw sugar sell-off…
Market update summary The spot ICE11 raw sugar price rallied to a 12 year high of 27.62 cents per pound in mid-September on the back of dry weather conditions across India and Thailand. This is equivalent to almost AUD 950 per tonne. Future year sugar prices (2024-2026) have also rallied strongly in response to current…
The spot value of sugar in Australian dollars per tonne skyrocketed more than 30% through March and April 2023 after a combination of bullish fundamental developments combined to drive sugar to an 11-year high whilst the AUD/USD exchange rate remained subdued below 0.68. The March/April rally was spurred on by several key events: Rain in…
Raw sugar saw a surge in value in late 2022 with the prompt Mar-23 futures contract trading to a high of 21.18 cents per pound in December. This was the highest value in over 5 years. The sharp rally was driven by uncertainty surrounding world sugar supply as the 2022 Brazilian crop came to a…
The sugar market has lost some of its lustre over the past couple of weeks as several events have shaken the confidence of investors across financial markets. Sugar has also been hit by some negative fundamental news of late as the spot price of sugar dropped to its lowest level in 12 months this week….
The spot value of sugar fell to a 3-month low of 18.30 cents per pound last Thursday 12th of May before staging a remarkable recovery through the next few days to peak at 20.24 c/lb on Tuesday night. This quick run up in value has coincided with a weak Aussie dollar which has been trading…
Centre South Brazil Brazil’s harvest will commence in April, current estimates for the crop are around 560-565 million tonnes of cane compared to 525m in 2021. In the first half of March Brazilian state-owned fuel distributor Petrobras announced adjustments to gasoline and diesel prices after almost 2 months of frozen prices. From Friday 11th March, the…
Market Headlines Centre South Brazil The end of January has brought much needed rain to Centre-South Brazil, particularly Sao Paulo state where most of the country’s sugarcane is grown. As of the Jan 30th Brazil’s National Institute of Meteorology had issued a Red Warning for most of Sao Paulo state (see dark red shaded area…
Market Headlines Raw sugar prices remained well supported through the second half of September and into October as multiple fundamental factors combine to keep a floor in the world price: Drought and frost in Brazil has reduced the 2021 crop size by an estimated 75 million tonnes of cane (12%) compared to 2020. Brazil’s Centre…
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