Sugar prices experienced a moderate decrease on Friday, influenced by the lingering impact of Thursday’s developments. During the prior day, Conab revised its estimate for Brazil’s sugar production in the 2023/24 period to 40.9 million metric tons (MMT), a notable increase from the April projection of 38.8 MMT. This upward revision came about due to favorable weather conditions, which contributed to enhanced sugarcane yields, according to Nasdaq.
Sugar prices faced a series of bearish influences recently. Last Thursday, Unica reported a substantial year-on-year increase in Brazil’s Center-South sugar output for the second half of July, rising by +11.3% to 3.681 million metric tons (MMT). The cumulative sugar production for the 2023/24 crop year until July also witnessed a significant rise of +19.8% year-on-year, reaching 19.167 MMT. Additionally, a larger proportion of crushed sugarcane, around 48.62%, was utilized for sugar production this year, a rise from 44.34% in the previous year.
Recently, the International Sugar Organization (ISO) projected that global sugar production for 2023/24 would decrease by -1.2% year-on-year to 174.8 MMT. This prediction indicated that the global sugar market would transition into a deficit of -2.12 MMT from the +852,000 MT surplus observed in 2022/23.
