On Tuesday, sugar prices declined for six consecutive weeks amid pressure on signs of solid global supplies.
In the closed trading session, the commodity’s futures for October contracts dipped by -2.44% to $17.58 per pound.
According to reports, Unica revealed last week that Brazil’s Center-South sugar output this year until July surged by 8.00% at 20.75 million metric tons (MMT).
Furthermore, the positive above-average monsoon rainfalls in India possibly benefit the crop, which is a bearish sentiment for its prices.
The Indian Meteorological Department disclosed on Monday that New Delhi has received 632.50 millimeters (mm) of rain during the current monsoon season. This is 3.00% better than the long-term average of 611.80 mm.
Meanwhile, Brazil’s crop agency Conab forecasted that Brasilia’s sugar production for 2024 to 2025 will rise 1.30% to a record of 46.29 MMT. This comes after the country’s sugar acreage climbed by 4.10% to 8.7 million hectares (21.5 million acres), its most in seven years.
In addition, the US Department of Agriculture (USDA) expects global sweetener output to surge by 1.40% annually from 2024 to 2025. This led to their prediction that human consumption of sugar would increase by 0.50 yearly to a record of 175.79 MMT.
Kenya Surges Domestic Sugar Output, Steering Price Drop
Kenya’s domestic sugar production soared in the first quarter of 2024, bittering the sweetener’s prices.
According to reports, the commodity’s production was at 485,802 tonnes this month.
However, the Agriculture and Food Authority (AFA) revealed that Kenya’s local output has consistently declined in April and May. This was primarily due to temporary closures at Transmara and Sukari mills for maintenance and brief shutdowns at Mumias and West Valley.
According to the AFA, Nairobi’s annual sugar consumption reaches 1.1 million metric tonnes, with 950,000 metric tonnes allocated for household use. This equates to an average monthly consumption of 80,000 metric tonnes.
