The futures contracts for the sugar saw an increase in New York, as signs of tighter supplies boosted the prices which last week fell to the lowest level in over a year. Sugar prices rose as much as 2.2% in New York on Monday.
Drier weather in Brazil for the next six to 10 days will strain crops, Maxar Technologies forecast, and the national supply company last week cut its estimate for the country’s 2023-24 output. Also, Thailand’s sugarcane production in the latest period fell more than 12 percent from a year earlier amid drought and higher costs, the government said.
Raw sugar futures fell 3.1 percent last week, partly due to a weaker Brazilian real – which encourages more exports – and optimism about Indian output amid forecasts of heavy monsoon rains. Fund managers have turned into a net bearish position for the first time since 2022.
Prices have begun to benefit from some bullish supply and demand news “after a violent start to April,” The Hightower Report said in a note. Still, the direction of the Brazilian real will remain closely watched by traders “as a resumption of the downtrend in the real could trigger similar action in sugar.”
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