Yesterday’s closing dated –19/12/2023
◾London White Sugar – 615.20s (+2.60)
◾NYBOT Raw Sugar #11 – 21.43s (+0.12)
◾USD/BRL- 4.8642 (-0.0033)
◾USD/INR – 83.1800 (+0.1200)
◾Brent Crude – 79.23 (+1.28)
◾BSE Sensex – 71,437.19 (+122.10)
◾NIFTY50 – 21,453.10 (+34.45)
Sugar prices Tuesday recovered from 8-1/2 month lows and closed higher as strength in the Brazilian real sparked short covering in sugar futures. On Tuesday, the real (^USDBRL) rallied to a 4-week high against the dollar, discouraging export selling from Brazil’s sugar producers.
Sugar prices have been under pressure for the last five weeks as Brazil ramps up sugar output. Last Tuesday, Unica reported Brazil’s Center-South sugar output rose +35% y/y in the second half of November and that sugar output in the 2023/24 crop year through November rose +23.5% y/y to 40.817 MMT. Meanwhile, Brazil exported 3.7 MMT of sugar in November, marking a new record for the month.
