Sugar Futures Contracts See Price Fluctuations in International Markets Amid Brazilian Rain Forecast

According to the National Bioenergy Union (UDOP), sugar futures contracts showed fluctuations on the main international exchanges as of Tuesday (22), marking the second consecutive day of decline in New York, which recorded its lowest level in a month.

The forecast for heavy rains in Brazil's Center-South region next week has been a critical factor influencing prices. This rain is expected to ease drought concerns affecting the area, which is significant for sugar production.

Impact of Rainfall Forecast on Market Prices

Rain expected on Friday is anticipated to lower temperatures and improve soil moisture levels, benefiting Brazil’s main sugar-producing areas. This positive outlook for the harvest has contributed to the decline in sugar prices in stock markets.

On ICE Futures in New York, raw sugar contracts experienced slight fluctuations. The March/25 contract fell 10 points, closing at 21.73 cents per pound, while the May/26 contract gained 5 points, closing at 18.12 cents per pound.

Mixed Results in London Markets

In London, the white sugar market displayed mixed outcomes. The December/24 white sugar contract dropped by $1.90, closing the day at $561.20 per ton. Conversely, the October/25 contract saw a slight increase of $0.50, reaching $529.60 per ton.

Brazilian Market

In Brazil, crystal sugar recorded a minor appreciation. According to Cepea/Esalq, mills negotiated the 50-kilo bag at €25.01, reflecting a 0.53% adjustment. Hydrated ethanol also saw a modest rise of 0.26%, with the cubic meter traded at €427.52, based on the Paulínia Daily Indicator.

This shift in the Brazilian market aligns with recent international trends influenced by environmental conditions and market demands.





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