Dollar Strength Weighs on Sugar Prices | U.S. Finance News
March NY world sugar #11 (SBH25) at this time is down -0.21 (-0.98%), and December London ICE white sugar #5 (SWZ24) is down -7.90 (-1.45%).Sugar costs at this time added to this week’s losses and dropped to 1-3/4 month lows. Today’s rally within the greenback index (DXY00) to a 6-3/4 month high is undercutting sugar costs. Also, an excessively long place by funds in London sugar might fuel long liquidation and exacerbate any price downturn. Last Friday’s weekly Commitment of Traders (COT) report confirmed funds boosted their net-long London sugar positions by 1,457 within the week to November 5 to 44,261 net-long positions, probably the most since information started in 2011.
The outlook for greater sugar manufacturing in Thailand is bearish for sugar costs. On October 29, Thailand’s Office of the Cane and Sugar Board projected that Thailand’s 2024/25 sugar manufacturing would soar by +18% y/y to 10.35 MMT. Thailand produced 8.77 MMT of sugar within the 2023/24 season that resulted in April. Thailand is the world’s third-largest sugar producer and the second-largest sugar exporter.Optimism that above-average monsoon rains in India will result in a bumper sugar crop is damaging for costs. The Indian Meteorological Department reported that India obtained 934.8 mm of rain during the present monsoon season as of September 30, probably the most in 4 years and seven.6% more than the comparable long-term average of 868.6 mm. India’s monsoon season runs from June by way of September.A supportive issue for sugar was Tuesday’s report from Unica that confirmed sugar output in Brazil’s Center-South area during the second half of October fell -24.3% y/y to 1.785 MMT. Conversely, the cumulative 2024/25 Center-South sugar output by way of October rose +0.3% y/y to 37 MMT. Recent drought and extreme heat brought on fires in Brazil that broken sugar crops in Brazil’s prime sugar-producing state of Sao Paulo. Sugar cane industry group Orplana stated that as many as 2,000 fire outbreaks affected up to 80,000 hectares of planted sugarcane in Sao Paulo. Green Pool Commodity Specialists stated that as a lot as 5 MMT of sugar cane might have been misplaced due to the fires. Conab, Brazil’s authorities crop forecasting company, cut its general 2024/25 Brazil Center South sugar manufacturing estimate on August 22 to 42 MMT from a earlier forecast of 42.7 MMT, citing decrease sugarcane yields as a consequence of drought and extreme heat. Similarly, Rabobank, on September 20, cut its 2024/25 Brazil sugar manufacturing forecast to 39.3 MMT from a earlier forecast of 40.3 MMT, citing extreme dryness. Also, Datagro cut its 2024/25 Center-South sugar manufacturing estimate on Monday to 38.7 MMT from a September estimate of 39.3 MMT, citing drought and restricted capability by mills.In a supportive issue for sugar costs, India’s Food Ministry on August 30 lifted restrictions on sugar mills producing ethanol for the 2024/25 yr that begins November, which can lengthen India’s sugar export curbs. Last December, India ordered sugar mills to stop utilizing sugarcane to provide ethanol for the 2023/24 provide yr to spice up its sugar reserves. India has restricted sugar exports since October 2023 to keep up ample home provides. India allowed mills to export solely 6.1 MMT of sugar during the 2022/23 season to September 30 after permitting exports of a report 11.1 MMT within the earlier season. However, on October 3, the Indian Sugar and Bio-energy Manufacturers Association (ISM) stated India can have 2 MMT of sugar to export subsequent season and urged the federal government to elevate its present sugar export restrictions.
The Indian Sugar and Bio-energy Manufacturers Association (ISM) reported on May 13 that India’s 2023/24 sugar manufacturing from Oct-Apr fell -1.6% y/y to 31.4 MMT. Also, the ISM on September 26 projected India’s 2024/25 sugar manufacturing would fall by -2% y/y to 33.3 MMT and that India’s 2023/24 sugar reserves will likely be at 8.4 MMT on September 30, in contrast with a May projection of 9.1 MMT. In a supportive issue for sugar costs, the International Sugar Organization (ISO) on August 30 forecasted a 2024/25 world sugar deficit of -3.58 MMT, a lot bigger than the estimated -200,000 MT deficit for 2023/24. ISO forecasted 2024/25 world sugar manufacturing of 179.3 MMT, down -1.1% y/y from 181.3 MMT in 2023/24. The USDA, in its bi-annual report launched on May 23, projected that world 2024/25 sugar manufacturing would climb +1.4% y/y to a report 186.024 MMT and that world 2024/25 human sugar consumption would increase +0.8% y/y to a report 178.788 MMT. The USDA forecasted that 2024/25 world sugar ending stocks would fall -4.7% y/y to a 13-year low of 38.339 MMT. More news from Barchart More Sugar News from Barchart
On the date of publication,
Rich Asplund
didn’t have (both immediately or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions. For more data please view the Barchart Disclosure Policy
right here.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
Stay up to date with the latest news within the US markets! Our web site is your go-to source for cutting-edge financial news, market trends, financial insights, and updates on home trade. We present day by day updates to make sure you have entry to the freshest data on stock market actions, commodity costs, currency fluctuations, and main financial bulletins.
Explore how these trends are shaping the long run of the US financial system! Visit us often for probably the most partaking and informative market content material by clicking right here. Our fastidiously curated articles will keep you knowledgeable on market shifts, investment methods, regulatory modifications, and pivotal moments within the US financial panorama.
