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.
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
November 2, 2017
The global sugar market is poised for a surplus of 9.80 million tonnes 2017/18, Australia-based analyst Green Pool said on Tuesday, amid stronger production and sluggish consumption growth.Read More
November 1, 2017
World sugar dynamics are the “worst” - for bulls – in at least 12 years, Green Pool said, hiking its estimate of the global output surplus, and hinting at the potential for further growth in stocks “into 2018-19 and perhaps beyond”.Read More
August 24, 2017
The global sugar surplus is expanding as Brazil, Thailand and the European Union drive world production to record, according to Green Pool Commodity Specialists. Supplies will outpace demand by 7.1 million metric tons in the 2017-18 season that starts in October in most countries, a 29 percent increase from a May forecast.Read More