Last week, sugar futures contracts closed lower across all major international markets. Here's a breakdown of the performance in key markets, along with insights into export data and domestic pricing trends.

Raw Sugar Prices Drop on Friday

On Friday, October 4th, 2024, raw sugar prices saw a decline across various contracts:

• March/25 contract: Down 23 points, closing at 23.01 cents per pound.
• May/25 contract: Fell by 28 points, closing at 21.27 cents per pound.
• Other contracts saw drops ranging between 11 and 26 points.

Record-Breaking Sugar Exports in September

Despite unfavorable weather conditions, Brazil, the world’s largest sugar producer and exporter, set a new export record in September. According to data released by the Secretariat of Foreign Trade (Secex):

• Total shipments reached 3.954 million tons in September, surpassing the 3.921 million tons exported in August.

Drought Impact on Sugarcane Milling and Production

While the drought in Brazil's central-south region has affected crop yields, it has also created favorable conditions for sugarcane milling:

• Dry weather allows mills to extend sugarcane processing and sugar production days, uninterrupted by rain.
• Port operations also benefit from the dry conditions, as rain can cause delays in loading and shipping.

London Market Performance

In the London market (ICE Futures Europe), white sugar contracts also closed lower on Friday:

• December/24 contract: Fell by 1.2%, closing at $576.90 per ton, a decrease of $7.20 from the previous day.
• March/25 contract: Down by $5.30, closing at $586.10 per ton.
• Other contracts recorded drops between $2.80 and $5.20 per ton.

Domestic Market: Cepea/Esalq Indicator

In Brazil's domestic market, the price of crystal sugar showed a minor increase, despite the overall downward trend:

• 50-kilo bag of crystal sugar: The price rose to R$ 146.97 (EUR 24.14) on Friday, up from R$ 145.79 (EUR 23.95) the previous day—an increase of 0.81%.

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