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SUGAR REPORT | 04.03.2021 | MARKET NEWS | SEBAT GROUP

SUGAR REPORT | 04.03.2021 | MARKET NEWS

Sugar prices on Wednesday posted moderate losses. A surge in sugar production in India weighed on prices Wednesday, along with weakness in the Brazilian real. Data on Wednesday from India's Sugar Mills Association showed that India's Oct-Feb sugar production rose +20% y/y to 23.38 MMT. Weakness in the Brazilian real on Wednesday was another negative factor for sugar prices as the real fell -1.45% to a 4-month low against the dollar. The weaker real provides incentive for export selling by Brazil's sugar producers.

Sugar prices are correcting lower from last Tuesday's contract and 4-year nearest-futures high. Concern about smaller global sugar supplies has fueled recent fund buying of sugar futures. Brazil reported last Monday that current shipping delays for its soybean exports might curb global sugar supplies because the queue of vessels waiting at Brazilian ports is so large that bottlenecks will likely continue until May when sugar is normally the biggest crop for export.



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