Sugar Costs Most Since 2012 as Brazil Rain Makes Shortage Worsehttp://www.bloomberg.com/news/articles/2016-06-29/sugar-costs-most-since-2012-as-brazil-rain-makes-shortage-worse
July 01, 2016 at 12:30 PM
Supplies from Brazil’s Center-South, the country’s top growing region, probably fell 26 percent in the first half of June from a year earlier after rains hindered harvesting, a Bloomberg survey showed. Industry group Unica is set to report the official figures on Friday. Output is tightening just as the nation’s currency is gaining steam, making growers more reluctant to sell to foreign buyers that pay in dollars.
Futures in New York are on pace for a fifth straight quarterly gain, the longest streak since 2008. Drought has devastated India’s crop so badly that the country, the world’s biggest cane grower after Brazil, will be forced to import the most sugar in seven years, a separate Bloomberg survey showed. The tighter supplies comes as world demand for the sweetener is set to climb to a record, according to U.S. government data. Global production will fall short of consumption this season and next, Australia-based researcher Green Pool Commodity Specialists estimates.
The rally was “helped by traders anticipating a potentially bullish Unica report,” James Liddiard, partner at Agrilion Commodity Advisers in New York, said in an e-mail. “An equally dramatic strengthening in the Brazilian real” spurred gains as it deters producer sale, he said.
Raw sugar for October delivery jumped 5.4 percent to settle at 21.01 cents a pound Wednesday on ICE Futures U.S. in New York. Prices earlier touched 21.2 cents, the highest for the rolling most-active contract since October 2012. In London, white sugar for August delivery climbed 3.7 percent to $568.20 a metric ton on ICE Futures Europe, after touching $572.70, also the highest since October 2012.
July 9, 2018
Surging ethanol stockpiles and tumbling prices for the biofuel risk bringing back more sugar production in top grower Brazil. “Prices have been coming down, ethanol stocks are building. Demand is strong but is probably not sufficient to clear the stocks,” said Tom McNeill, a director at Brisbane, Australia-based researcher Green Pool Commodity Specialists. “I think this assumption that everyone has made that maximum ethanol is absolutely locked in could be challenged within the next three months.”Read More
May 4, 2018
July raw sugar settled down 0.06 cent, or 0.5 percent, at 11.69 cents per lb. Focus remained on a global supply glut, with commodity analyst Green Pool forecasting a combined sugar surplus of almost 25 million tonnes for the 2017-18 and 2018-19 seasons.Read More
May 3, 2018
The world’s sugar traders are experiencing the biggest ever global surplus. That’s according to Green Pool Commodity Specialists, which expects the glut to reach 18.4 million metric tons this season. The Brisbane, Australia-based researcher boosted its estimate by almost a quarter because of a massive increase in the sugar-cane area and yields in India, the No. 2 producer.Read More
May 2, 2018
For sugar, there’s no sweet ending in sight after a long period of declining prices. Australia-based consultancy Green Pool recently upped its surplus estimate by 43% to almost 15 million tons. The International Sugar Organization, the global trade body, sees a surplus of 5.2 million tons.Read More
March 29, 2018
Green Pool signalled further weakness ahead of sugar prices, lifting its forecasts for the world production surpluses this season and in 2018-19, and heralding a further one in 2019-20.Read More
February 23, 2018
Global sugar prices have tumbled about 33 percent in the past year on a global surplus as production increases in Europe and India. ISMA last month raised its 2017-18 sugar output estimate 4 percent to 26.1 million tons, the highest in three years. Green Pool Commodity Specialists this week forecast Indian production at 28.1 million tons, with expectations of an equal or better crop next season.Read More
February 6, 2018
Green Pool hinted at downbeat prospects for sugar prices as it raised its estimate for the production surplus for this season, forecast another stockbuild in 2018-19, and said a third one could be in the offing.Read More
January 3, 2018
March raw sugar settled down 0.02 cent, or 0.13 percent, at 15.31 cents per lb after peaking at 15.37 cents, its highest since Nov. 28. But focus on bearish fundamentals returned after closely-watched commodity analyst Green Pool on Wednesday raised its projections of a global surplus in 2017/18 to 10.43 million tonnes, up from a forecast of 9.8 million. [nL8N1OY1Q7Read More
January 3, 2018
Green Pool hinted at the potential for sugar price weakness as it lifted to a 15-year high its forecast for the extent of supplies of the sweetener, citing strong production prospects in the likes of India and Thailand. The Australian-based analysis group raised by 629,000 tonnes to 10.43m tonnes its forecast for the world sugar production surplus in 2017-18 - while reducing by 664,000 tonnes to 1.11m tonnes its estimate for the output shortfall last season.Read More