9-Sugar Prices Fall As Brazil Witnesses Strong Sugar Production Output

1. Sugar Prices Fall As Brazil Witnesses Strong Sugar Production Output Sugar Prices Fall As Brazil Witnesses Strong Sugar Production Output Tuesday saw a close of -0.13 (-0.48%) for March NY world sugar #11 (SBH24) and -1.40 (-0.19%) for December London white sugar #5. Price Drop For Sugar Price Drop For Sugar Due to strong sugar production in Brazil, sugar prices on Tuesday ended the day with a modest decline. According to a report from Unica published on Tuesday, sugar production in Brazil's Center-South increased by +98% y/y in the second half of September to reach 3.364 MMT. It also increased by +23.8% y/y to reach 32.615 MMT for the crop year 2023/24 as a whole. Additionally, 49.54% of the crushed sugarcane—up from 45.46% last year—was used to make sugar this year. Concern over decreased global sugar production has caused sugar prices to rise sharply over the past month, with NY sugar posting a 12-year nearest-futures high on September 19 and London sugar posting a 12-year high on September 14. On September 5, the largest sugar trader in the world, stated that it anticipates a global sugar deficit of - 5.4 MMT in 2023–24, the sixth year of shortages, as India may limit its sugar exports and farmers in Thailand plant more lucrative cassava rather than sugarcane. India’s Policy Impacting Sugar Pricing India’s Policy Impacting Sugar Pricing There is speculation that India may soon announce export restrictions on its sugar supplies, which supports the price of sugar. According to Reuters, India is thinking about prohibiting its sugar mills from exporting sugar in the 2023–24 season, which starts in October, because the country's sugar crop was negatively impacted by a lack of monsoon rains. The monsoon rainfall this year (Jun-Sep) was 6% below average, according to India's Weather Department, making it the worst in the previous five years. The

2. food ministry of India stated that it will make a final decision regarding sugar exports for 2023–2024 once accurate production estimates are available. Following a record-breaking 11.1 MMT of sugar exports the previous season, India only permitted mills to export 6.1 MMT of sugar during the current 2022–23 season to September 30. The Sugar Mills Association of India (ISMA) predicted on August 2 that India's sugar production would decrease -3.4% y/y to 31.68 MMT in 2023/24. Other Factors Influencing Sugar Prices Other Factors Influencing Sugar Prices Thailand's sugar output is expected to fall by -18% year on year to 9 MMT due to a severe drought, according to the Thai Sugar Millers Corp on September 7. Separately, sugar trader Czarnikow forecasted on August 7 that Thailand's sugar production in 2023/24 would fall -31% year on year to a 17-year low of 7.4 MMT due to dry weather. Furthermore, the USDA's Foreign Agricultural Service (FAS) forecasted last Thursday that Thailand's sugar production in 2023/24 will fall -15% year on year to 9.4 MMT. Rainfall in Thailand has been significantly lower this year compared to the same period last year, and the onset of the El Nino weather system could reduce precipitation even further over the next two years. Thailand is the world's third-largest producer of sugar. Conab raised its Brazil 2023/24 sugar production estimate to 40.9 MMT on August 17, up from 38.8 MMT in April, as favorable weather conditions increased sugarcane yields. Concerns that an El Nino weather pattern will disrupt global sugar production are a bullish factor for sugar. El Nino weather patterns typically bring heavy rains to Brazil and drought to India, reducing sugar crop production. In its bi-annual report released on May 25, the USDA predicted that global 2023/24 sugar production would rise +6.0% year on year to a record 187.881 MMT, while global 2023/24 human sugar consumption would rise +2.3% year on year to a record 180.045 MMT. The USDA also predicted that global sugar ending stocks would fall -15.2% year on year to a 13-year low of 33.455 MMT in 2023/24. Furthermore, ISO predicted on August 10 that the global sugar market will experience a deficit of 2.12 MMT in 2023/24, down from a surplus of +852,000 MT in 2022/23. This is due to a 1.2% y/y decline in 2023/24 sugar production, according to ISO. If you are a sugar importer wishing to buy sugar in bulk or a sugar exporter willing to export bulk sugar, then Tradologie.com is the right platform for you. Tradologie.com is a Software as a Service platform that facilitates bulk agro-trade across the globe. Through tradologie.com’s interface, buyers can avail the best qualities of agro-commodities at negotiable rates. The transaction oriented platform has 600,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 150 countries. To register as a buyer, click here. To register as a seller, click here. To stay updated with the latest happenings in the agro-trade industry, follow Tradologie.com across all social media channels.