May NY world sugar #11 (SBK24) on Monday closed down -0.49 (-2.32%), and May London ICE white sugar #5 (SWK24) closed down -9.60 (-1.59%).
Sugar prices on Monday tumbled to 2-month lows. Rising sugar production in Brazil, the world's largest sugar producer, is undercutting prices. Last Tuesday, Unica reported that Brazil's Center-South sugar output surged +1051% y/y in the first half of February to 27,000 MT and that sugar output in the 2023/24 crop year through mid-February rose +25.6% y/y to 42.158 MMT. Meanwhile, more sugarcane is being crushed for sugar than ethanol, as 49.04% of cane was crushed in the 2023/24 crop year through mid-February for sugar production compared to 45.95% last year.
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