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SUGAR REPORT | 20.03.2023 | MARKET NEWS | SEBAT GROUP

SUGAR REPORT | 20.03.2023 | MARKET NEWS

 

Barchart - Sugar prices Friday gave up an early advance and closed slightly lower.  A slump of more than -1% in WTI crude oil prices (CLK23) to a 15-month low weighed on sugar.  Lower crude prices undercut ethanol prices and may prompt global sugar mills to divert more sugarcane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.

Sugar prices Friday initially moved higher after the India's Sugar Mills Association (ISMA) reported that India's 2022/23 sugar output from Oct-Mar 15 fell -1.1% y/y to 28.2 MMT.  India is the world's second-largest sugar producer.

A bearish factor for sugar was last Friday's report from Unica that showed Brazil's 2022/23 sugar production from Oct-Feb rose +4.5% y/y to 33.504 MMT.  Also, Datagro last Wednesday projected that 2023/24 sugar production in Brazil's Center South would climb by +13.1% y/y to 38.3 MMT.  Brazil is the world's largest sugar producer.



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