{"id":20881,"date":"2024-07-25T09:46:43","date_gmt":"2024-07-25T09:46:43","guid":{"rendered":"https:\/\/www.selinawamucii.com\/news\/?p=20881"},"modified":"2024-07-25T09:46:45","modified_gmt":"2024-07-25T09:46:45","slug":"global-sugar-prices-melt-down-as-production-rebounds","status":"publish","type":"post","link":"https:\/\/www.selinawamucii.com\/news\/2024\/07\/25\/global-sugar-prices-melt-down-as-production-rebounds\/","title":{"rendered":"Global sugar prices melt down as production rebounds"},"content":{"rendered":"\n

Global sugar prices sunk on July 23, 2024 in the futures markets as production hubs Brazil and India reported surplus.<\/p>\n\n\n\n

On the 23rd<\/sup>,  <\/sup>sugar #11 or unrefined sugar for October delivery lost by –0.77%<\/u><\/a> in New York, according to Barchart. This was even as refined white sugar #1 in London shed 1.39%.<\/p>\n\n\n\n

A spot check on Market Insider on July 24, 2024 showed that there has not been great improvements since then. For one, the highest price on the 24th<\/sup> was $0.20 a pound<\/u><\/a>, the same as on the 22nd<\/sup>. <\/p>\n\n\n\n

In comparison, the postings a week earlier on July 15 were at $0.19 a pound, amid a then ongoing price weakening. <\/p>\n\n\n\n

On July 16, sugar #11 lost by -1.33% <\/u><\/a>in New York while #5 or complete white sugar shed 0.75% in London.<\/p>\n\n\n\n

The price downturn to a quarter 3, 2024 average of $19.75 a pound owes to upward production and milling in key nations.<\/p>\n\n\n\n

Uptick Milling in Brazil <\/strong><\/strong><\/h3>\n\n\n\n

One of these sources is Brazil, whose sugar milling has risen for the connected reason that crude oil rates are weak. <\/p>\n\n\n\n

Incidentally, a price depreciation in crude oil also lowers the price of ethanol which comes from sugar. This in turn compels Brazil\u2019s sugar millers to increase milling to compensate the low rates.<\/p>\n\n\n\n

On top of this, Brazil\u2019s cane production will rise by 1.3%<\/u><\/a> for the 2024-25 period to a historic 46.292 million tonnes. This data by Conab, the country\u2019s sugar regulator, could be bearish on the sweetener.<\/p>\n\n\n\n

India\u2019s Lower Monsoon<\/strong><\/strong><\/h3>\n\n\n\n

Another nation that could cause low sugar rates is India, whose production is up despite below-average monsoon. <\/p>\n\n\n\n

The weather department reported that the monsoon rains were 2% below the yearly average by mid-July 2024. In theory, this should mean lower production and high prices. However, May 2024 forecasts that 2024 monsoon rains would be 2% above the 104% average<\/u><\/a> are still bearish on sugar prices.<\/p>\n\n\n\n

Additionally, the Indian Sugar Mills Association (ASMA) announced on July 3, 2024 that India has sufficient quarterly sugar stocks at 9.1 million tonnes<\/u><\/a>. <\/p>\n\n\n\n

Hence, analysts predict that the country could now relax its grip on its domestic supplies and allow exports.<\/p>\n\n\n\n

If India allows exports of raw and unrefined sugar, this could mean further global surplus and price meltdown. <\/p>\n\n\n\n

In summary, as Brazil and India report extra reserves, consumers can expect global sugar prices to remain low. And as the facts below reveal, production and price have always gone hand-in-hand historically in the sugar industry.<\/p>\n\n\n\n

Global Sugar Prices Statistics<\/strong><\/strong><\/h2>\n\n\n\n

The latest developments on the world sugar reserve situation include India\u2019s announcement of a 3.36 million-tonne<\/u><\/a> surplus on July 3, 2024. This could prompt export resumption and saturate the world market.  This development also adds to a sugar production rise in Brazil in the 2023-24 year of 25.7%, according to Unica.  The U.S. Department of Agriculture in May 2024 also forecast a global sugar production hike of 1.4% for the 2024-25 season, to 186.024 million tonnes<\/u><\/a>.<\/p>\n\n\n\n

How has production affected global sugar prices in the recent past<\/strong>? <\/p>\n\n\n\n

According to the International Sugar Organization (ISO), world sugar reserves in October 2023 for the 2023-24 year stood at 179,887,000 tonnes<\/u><\/a>. This was more than those of the 2022-23 year at 178,328,000 tonnes. However, this was a deficit of -315% while the 202-23 year had a surplus of 310%. As a result, the November 2023 sugar prices were bullish and averaged $0.2790 <\/u><\/a>per pound, according to Trading Economics.  As the 2023-24 season progressed, prices in some months of 2024 went down as production increased.  Hence, the July 2024 price stood at a low $0.18-a-pound mark.<\/p>\n\n\n\n

What are the most recent highs and lows in world\u2019s sugar prices<\/strong>? <\/p>\n\n\n\n

The global price has come down from $0.28<\/u><\/a> a pound on November 7, 2023, to $0.1833 a pound on July 24, 2024. In -between these two extremes, there has been a rise and fall pattern in pricing, sometimes showing volatile drops. For instance, in late 2023, the price descended from $0.279 on November 21 to $0.232<\/u><\/a> per pound on December 21. In 2024, prices rose in January, fell in March through May, then rose slightly in June, before an eventual July decline.<\/p>\n","protected":false},"excerpt":{"rendered":"

Global sugar prices sunk on July 23, 2024 in the futures markets as production hubs Brazil and India reported surplus. On the 23rd,  sugar #11 or unrefined sugar for October delivery lost by –0.77% in New York, according to Barchart. This was even as refined white sugar #1 in London shed 1.39%. A spot check on Market…<\/p>\n","protected":false},"author":3,"featured_media":20328,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"\nGlobal sugar prices melt down as production rebounds - Selina Wamucii | Food & Agriculture News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.selinawamucii.com\/news\/2024\/07\/25\/global-sugar-prices-melt-down-as-production-rebounds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Global sugar prices melt down as production rebounds - Selina Wamucii | Food & Agriculture News\" \/>\n<meta property=\"og:description\" content=\"Global sugar prices sunk on July 23, 2024 in the futures markets as production hubs Brazil and India reported surplus. 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