Sugar prices fell about 2 percent on the New York Stock Exchange, reversing a jump of about 1.9 percent in trading on Wednesday, due to prospects for limited exports from India and concerns about a shortage of sugar cane cultivation in some countries.
The rises were also driven by a shortage of deliverable sugar ahead of the May white sugar contract expiring next Friday.
According to Bloomberg data, sugar prices have increased by about 29 percent since the beginning of the year until now.
The rise threatens to raise costs for manufacturers of everything from soft drinks to baked goods, and puts pressure on global food price inflation.
China is among the countries that have lowered its supply forecasts, as the government this week slightly lowered its sugarcane production estimate for 2022-2023 to 9 million tons.
The head of analysis at Wilmar International, Karim Salamon, said that the announced reductions from the main sugar cane-producing countries indicate that the season will end with a global shortage.
“Next year’s crop will probably be better,” he added. He added, “The area of sugarcane and beetroot is likely to decrease in most regions due to the effects of competing crops.
A major factor influencing sugar prices is the expectation that India will not allow additional exports in the season that ends in September.
And last October, India, the world’s largest sugar producer, extended restrictions on exporting sugar for a year until October 2023, to contain rising domestic prices after record exports.
#Sugar #prices #breather #rising #highest #level #decade