Sao Paulo: As of the end of January, Brazilian mills have reportedly hedged around 72% of their anticipated sugar exports for the 2024-25 season, according to risk management firm Archer Consulting on Tuesday. Archer highlighted that the estimated hedging volume, utilizing ICE New York raw sugar futures, has surpassed 18.7 million metric tons out of the projected 26 million metric tons expected to be exported in the upcoming season.
This hedging activity indicates a proactive approach by Brazilian mills compared to the corresponding period in the previous year, where mills had hedged around 64% of their anticipated shipments. Archer Consulting reported that mills secured an average price of 22.20 cents per pound through their hedging strategies.
