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Barchart
Barchart
Rich Asplund

Sugar Prices Fall Back on Dry Brazil Weather That Benefits the Sugar Harvest

Oct NY world sugar #11 (SBV23) on Monday closed -0.09 (-0.36%), and Oct London white sugar #5 (SWV23) closed -2.30 (-0.33%).

Sugar prices Monday fell back from 1-month highs and closed lower.  Sugar prices were undercut on speculation that dry conditions in Brazil would boost the country's sugar harvest.  Favorable Brazilian weather forecasts also reduced the chances of damaging frost.  Sugar production is running strong in Brazil.  Unica reported on July 11 that Brazil Center-South sugar output in the second half of June rose +7.6% y/y to 2.695 MMT and that sugar output in the 2023/24 crop year through June rose +25.9% y/y to 12.228 MMT.  Also, 47.68% of the crushed sugarcane was used for sugar production this year, an increase from 42.56% last year.

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