Sugar Prices Plummet as Brazil's Bumper Crop Boosts Supply Outlook

Sugar prices dropped to an 18-month low this past week as a productive start to the season in Brazil, the world's top exporter, fueled bets that markets will remain well-supplied this year. Murilo Aguiar, StoneX risk management consultant, provided insights into the market dynamics in a recent Bloomberg article.

Aguiar noted, "A large output from Brazil's Center-South region is expected through the peak of the season." The seasonal peak for sugar cane crushing typically occurs in the months of July and August.

The article highlighted several key points

Brazil reported strong sugar cane crushing in the early stages of its new season, which kicked off in April, supporting speculation over abundant supplies in the coming months.
Favorable weather in Brazil is aiding field work, while the country's cane acreage is also seen increasing this year.
In India, another major producer, the monsoon season is expected to start slightly earlier this year, with a forecast for above-average rain raising the prospect for bigger harvests and the easing of export curbs on some crops.

Analysts caution to watch for potential impact of the drier weather on the development of the cane that will be harvested later in the year.

As supply-driven price movements roil the sugar markets, StoneX’s Brazil team remain committed to providing boots-on-the-ground insights and analysis to help market participants navigate these challenging times.

Unlock valuable Softs insights with StoneX Market Intelligence

Dive deeper into the world of sugar and other soft commodities with StoneX Market Intelligence. Sign up for a free 14-day trial and access exclusive https://subscribe.stonex.com/softs, including the "Brazil Sugar & Ethanol Bundle," to stay informed about the latest market developments and make better-informed trading decisions.

To read the original link, click here.

See why StoneX is a partner of choice

Have questions about our products or services? We're ready to help.

Start a conversation

StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

Globality

With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency

As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise

From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.

Tell us about yourself. Are you a:

First name

Last name

Company

Country

Province/Region

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our Privacy notice to learn more.

First name

Last name

Company

Account number

Account holder name (if different from above)

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our Privacy notice to learn more.

The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer.

This website is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.