The raw sugar futures market in New York climbed 18 December almost four percent, supported by increased cash purchases of that product, traders said. This result confirms the recovery in prices began in late August. The gap between demand lower production to consumption in the current season and the slight strengthening of the Brazilian real exchange rate against the US dollar They are the main causes, but the Rabobank report warns that the recovery is vulnerable to a possible currency devaluation in Brazil. Uncertainty also focuses on the negative impact of the weather in producing areas in the world.
At the end of the session the contract raw sugar for March delivery, the nearest maturity and taken as a reference, concluded operations located in 15.10 cents a pound, for a rise of 0.40 cents, or 3.7%.
Sweetener prices were boosted further by supply concerns and indicators of technical buying and the growing global shortage of the product. Moreover, in the London market price of the sweetener in the form of refined or white she rose $ 7.50, or 1.9% to $ 413.70 per metric ton.
State of the crop in the world
The Rabobank report on the latest revision of the world sugar balance analyzes the evolution of world sugar market in the third quarter of 2015 ensures that prices and confirms that it has remained slightly upward trend since August. Recovery depends on the devaluation that could be derived from the poor economic situation in Brazil, the impact of El Niño, multiple wet and dry in Asia.
Rabobank sees a decrease in the production of that food in the European Union (EU), China and India. The EU could be on course for its worst harvest of sugar beet in more than four decades from 2015 to 2016. The bank estimates that sugar production in the 2015-2016 season of South-Central Brazil will fall to 30.7 million metric tons recorded wet weather throughout November, and now there are doubts about the amount of cane to be grinding before the season actually ends.
In the USA, sugar prices will vary within a constricted range as the prices of agricultural commodities. The Mexican sugar campaign continued difficulties in milling operations. Australia will have the highest production in the last nine years.
Source: Rabobank. Prensa Latina
