On Tuesday, sugar prices climbed as Brazil’s output has been anticipated to decline amid limited rain and high temperatures.
In the Asian afternoon session, the US sweetener’s futures for March shipments increased by 2.14% to $0.23 per pound. London sugar futures for December delivery remained flat at $579.70 a ton.
Furthermore, sugar has gained support after reports that Brazil’s 2024/25 production is projected to dip by 38.20 metric million tons (MMT) to 39.50 MMT. This is lower than the previous 38.30 MMT to 40.80 MMT forecast.
The Unica report also boosted commodity prices after it revealed that yield in the Brasilia region during last month’s second half declined by -16.20% year over year to 2.83 MMT.
Moreover, US sugar prices in September have rallied to a 7-1/2 month high due to drought conditions in Brazil, which cut the country’s production forecast.
Meanwhile, Conab has also reduced its overall 2024/25 Brazil Center South sweetener yield outlook to 42.00 MMT from the last 42.70 MMT anticipation. The agency cited lower sugarcane outputs due to drought and extensive heat.
Additionally, prices have been supported as India’s Food Ministry has lifted curbs on sugar mills producing ethanol for next season starting November, which may sustain the country’s export restrictions.
Burundi Sugar Prices Record 150% Increase
Sugar prices in Burundi have translated into luxury goods after reports that they increased by over 150.00%, which angered President Evariste Ndayishimiye.
According to sources, the Mono Sugar Company has recently unilaterally raised the cost of sugar, steering retail prices to climb from BIF3200/kg to BIF8000/kg (U$1.08/kg to U$2.7/kg).
Meanwhile, the President’s spokesperson noted that Sosumo adjusted the price of sugar upward, a move that disappointed many citizens and left the Head of State dissatisfied.
She also reported that President Ndayishimiye asked the Ministry of Commerce to form a commission to evaluate the government’s ability to set sugar prices. This assessment would consider the cost of imported sugar, profit margins, and Sosumo’s production methods.
