Sugar Market Update: Prices Stabilize Amid Positive Production Forecasts
Sugar Prices Stabilize After Recent Decline
Sugar prices have stabilized following a recent drop. Currently, the price stands at approximately 22.05 US cents per pound, which is roughly 0.447 euros per kilogram. This decline is mainly attributed to positive production forecasts and improved crop conditions in key growing regions.
Production Forecasts and Market Overview
For the 2024/25 fiscal year, the U.S. Department of Agriculture (USDA) expects global sugar production to reach around 186 million tons. Global stocks are projected to reach 38.3 million tons, indicating a slight surplus of approximately 200,000 tons. In the European Union, sugar production is also expected to increase, with the 2024/25 forecast at 16.41 million tons, a rise of 5.1% compared to the previous year. This increase is due to an expanded cultivation area for sugar beets.
Market Outlook
Despite the recent price decline, market participants remain optimistic. The increased production forecasts could contribute to market stabilization. The expected surplus may continue to influence prices, while global demand remains steady. Market observers should closely monitor these developments, as the market may remain volatile in the coming months.
Sugar prices have stabilized following a recent drop. Currently, the price stands at approximately 22.05 US cents per pound, which is roughly 0.447 euros per kilogram. This decline is mainly attributed to positive production forecasts and improved crop conditions in key growing regions.
Production Forecasts and Market Overview
For the 2024/25 fiscal year, the U.S. Department of Agriculture (USDA) expects global sugar production to reach around 186 million tons. Global stocks are projected to reach 38.3 million tons, indicating a slight surplus of approximately 200,000 tons. In the European Union, sugar production is also expected to increase, with the 2024/25 forecast at 16.41 million tons, a rise of 5.1% compared to the previous year. This increase is due to an expanded cultivation area for sugar beets.
Market Outlook
Despite the recent price decline, market participants remain optimistic. The increased production forecasts could contribute to market stabilization. The expected surplus may continue to influence prices, while global demand remains steady. Market observers should closely monitor these developments, as the market may remain volatile in the coming months.