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Barchart
Barchart
Rich Asplund

BIZARRE: Sugar prices retreat on improved supply prospects and brazilian real weakness - You Need To See This

May NY world sugar #11 (SBK24) on Tuesday closed down -0.39 (-1.95%), and Aug London ICE white sugar #5 (SWQ24) closed down -10.20 (-1.76%).

Sugar prices posted moderate losses on Tuesday, with NY sugar falling to a 15-month low and London sugar dropping to a 13-month low.  Improving supply prospects are hammering sugar prices.  Last Friday, Unica reported that Brazil's Center-South sugar output in the second half of March was 183,000 MT, up +9% from last year.  Also, Brazilian sugar output so far in the 2023-24 marketing year through March is up +25.7% y/y to 42.425 MMT.  Brazil's sugar mills have ramped up their cane crushing for more sugar and less ethanol.  Mills have crushed 48.87% of total cane for sugar production this year, up from 45.86% last year.

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