Sugar prices fall to lowest level in two years
Baku – APA-Economics. Sugar prices fell to their lowest in more than two years as confirmation of a large Brazilian crop pushed the market below a key technical level, APA-Economics reports. The benchmark ICE raw sugar fell below 18.66 cents a pound, regarded as a technical support level which had held for the past three months. It was trading at 18.42 cents per pound, the lowest since August 2010 and down 4.2 per cent from the start of the week.
The bears were vindicated as Unica, the Brazilian industry association said the production of sugar in the main south and central region at the end of November was 32.9m tonnes, up 6 per cent from a year before. Since most analysts were expecting 30m-33m tonnes for the whole year, the announcement sent sugar prices tumbling.
On fundamental supply and demand news, investors are now focused on the crops in India and Thailand, which are large sugar producers. The prospects for India, which had not seen enough rain at the start of the monsoon season, are expected to be better than initially forecast, although there is uncertainty about the Thai production numbers.
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