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SUGAR REPORT | 28.02.2024 | MARKET NEWS | SEBAT GROUP

SUGAR REPORT | 28.02.2024 | MARKET NEWS

Barchart - Sugar prices on Tuesday extended Monday's gains, with NY sugar posting a 2-week high and London sugar posting a 1-week high. Sugar rallied Tuesday on positive carryover from Monday when Sucden predicted that India's 2024/25 sugar production would fall -15.3% y/y to 28 MMT.    

Reduced sugar production in India is a bullish factor. The Indian Sugar Mills Association (ISMA) reported last Monday that India's 2023/24 sugar output during the Oct -Feb 15 period fell -2.5% y/y to 22.4 MMT. For the full marketing year, ISMA forecasts India's 2023/24 sugar production at 33.05 MMT, down -9.7% from 36.6 MMT in 2022/23.  India's Weather Department said this year's monsoon rain (Jun-Sep) was 6% below average, the poorest monsoon rainfall in 5 years. In October, India extended restrictions on sugar exports from Oct 31 until further notice in an attempt to maintain adequate domestic supplies. India allowed mills to export only 6.1 MMT of sugar during the 2022/23 season to Sep 30 after letting them export a record 11.1 MMT in the previous season. India is the second-largest sugar producer in the world.



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