According to a report by Livemint, global sugar prices are reaching new heights as the supply continues to remain low. The shortage of deliverable sugar ahead of Friday’s expiry of the white-sugar contract for May is causing the commodity’s prices to rise. John Stansfield, a senior sugar analyst at DNEXT Intelligence, noted that there are a significant number of contracts to be closed and those holding short positions don’t have the physical sugar to tender.
The anticipation of reduced sugar exports from India and weak supplies from Thailand, Europe, Mexico, and China have also contributed to the increase in sugar prices. Soren Jensen, a market observer, pointed out that India’s sugar mills have exhausted their export quota, and with no possibility of an increase, there will be less supply from the largest exporter of white sugar. Brazil is expected to replace India as a major sugar exporter; however, it may not export as much as initially anticipated due to the current harvest.
