iGrain India - Sugar futures prices softened recently due to signs of improved global supply. On the New York Exchange, the March raw sugar futures price dropped by 0.11 cents per pound (a 0.51% decline), and on the London Exchange, the white sugar futures price decreased by $2.80 per tonne (also 0.51%).
This followed a notable dip earlier in the week when sugar futures in New York hit their lowest point in two and a half months, while London saw its lowest prices in three weeks.
However, the decline in prices moderated by the third day of the week. On November 21, the International Sugar Organization (ISO) revised global sugar production figures, reducing the supply-demand gap from 3.58 million tonnes in August to 2.51 million tonnes. They also raised the global sugar surplus for the 2023-24 season from 200,000 tonnes to 1.31 million tonnes.
The weakening of Brazil's currency, the Real, has contributed to increased sugar sales by Brazilian millers, improving global supply.
Despite this, sugar production in Brazil's Central Southern (NYSE:SO) region has fallen sharply. According to UNICA, sugar production in the first half of November 2024 dropped by 60% compared to the same period last year,
and total sugar output for the season was down 3% as of November 15. This reduced production offers some support for the market amidst the supply improvements.