Between October 7 and 14, sugar prices fluctuated, with stability in New York and an increase in London. This development is mainly influenced by Wilmar International’s announcement regarding the reduction in sugar production in Brazil, exacerbated by unfavorable climatic conditions.
Irregular evolution of sugar prices
THE sugar price evolved irregularly between October 7 and 14, with a price stability observed in New York, while prices recorded a increase in London. This increase in prices is explained in particular by the announcement of Wilmar Internationalwhich revised downwards its estimate of production in the Center-South of Brazil for 2024-2025, estimated between 38.2 Mt and 39.5 Mt, compared to 38.3 Mt to 40.8 Mt previously in September.
Impact of climatic conditions on production
The drop in production forecasts is attributed to limited rain and to high temperatures which affect the growth of sugarcane. Let us remember that the drought and excessive heat have recently led to fires in Brazil, damaging sugar crops in the state of São Paulothe main sugar state of the country.
This article was written by specialist journalists from La Dépêche-Le petit Meunier, which has been supporting grain trade operators since 1938.
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