New York: The price of raw sugar jumped on Thursday, continuing a week-long upward trend, driven by concerns over dry conditions in Brazil and a reduced production forecast in India, reports Mint.
Raw sugar futures closed at 19.25 cents per pound, a 2.1% increase, or 0.39 cents. The market has seen a roughly 6% rise in the past week.
“The rise in prices reflects ongoing worries about limited rainfall in Brazil and a decline in expected sugar production in India,” stated a report from Rabobank.
The Indian Sugar Mills Association announced on Thursday that India’s sugar production for the current season, ending in September, is now projected at 26.4 million metric tons. This is a 2.94% decrease from their previous estimate of 27.2 million tons.
Market analysts also believe that India may not fulfill its one million ton sugar export quota.
While Indian mills have contracts to export 600,000 tons of sugar in the 2024/25 marketing year, they are hesitant to commit to further exports due to rising domestic sugar prices.
White sugar also saw an increase, rising 1% to $538.70 per metric ton.
Breaking News: Global sugar prices up following lower output in India
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