New York: According to the Analysts at Citi, the prices of raw sugar at ICE exchange SBc1 are likely to remain higher for a longer period and may touch new highs mainly due to expected production difficulties in Asia and the possible ban on exports from India, reports Reuters.
In a monthly report about the soft commodities market,, on sugar, Citi upgraded its price target by 1 cent for the last quarter to 25.50 cents per pound, while also increasing targets for next year.
Citi anticipates that fund managers will increase their positions in raw sugar futures on the ICE exchange in the upcoming weeks, suggesting the potential for prices to test higher levels, possibly ranging between 27 and 30 cents in the final quarter of the year.
The report highlighted the existing factor of a substantial global deficit for the 2023/24 period, which has already contributed to sugar trading at levels close to those not seen in a decade. The report specifically noted that both India and Thailand have recently experienced lower-than-normal rainfall, which might result in further reductions in crop yields for the upcoming 2023/24 harvest season.
