Quotes on sugar for Jan virsli 12%

2020-02-06 12:04:19
Machine translation
Quotes on sugar for Jan virsli 12%

against the background of falling prices for basic agricultural products in the epidemic coronavirus, traders began to look for new ideas for investment, and sugar became one of those objects.

 

According to ICE Futures as at 31 January open interest in futures on the stock exchange in new York made up 1.19 million contracts, which is a record. The most optimistic are the investors ' forecasts of sugar prices in three years against the expected deficit of the proposals.

 

According to experts, Green Pool Commodity, as a result of reduced production in Pakistan, India, Thailand, China, USA and Mexico, in 2019/20 MG the world sugar deficit will amount of 6.63 million tons, whereas in previous years the surplus of the product. However, in 2020/21 MG deficit will decrease to 1.01 million tonnes due to the recovery of production in India and Brazil.

 

despite the reduction proposals, the futures on raw sugar in new York in 2020 increased by 12% to 14.89 cents/lb or 328 $/t, which is a 2-year high.

 

the Expected shortage of sugar led to a rise in prices, despite the decline in oil prices by 10% for epidemic coronavirus. The sugar market reacts to oil prices because the cost of ethanol is also associated with sugar. In the case of lower prices for ethanol, converting sugarcane in Brazil increases sugar production instead of biofuel. But while they are reluctant to do this, as the sale of biofuels brings instant profits, while exports of sugar takes up to 45 days.

 

in addition to the market pressure the increase of sugar production in Russia in 2019 thenwrenn with the previous year by 16.5% to 7.3 million tonnes, which is 9.7% higher than the record figure in 2017 Is due to the increase of sugar beet production by 20.7% to 50.8 million tons.

 

Ukraine in 2019 gathered of 9.84 million tonnes of sugar beet, which is far below the figure 2018, when it was collected 13.5 million tons of sugar beet with a record average yield of 49.4 t/ha sugar Production in 2019 was reduced by a third to 1.48 million tonnes, as the global surplus impact on the Ukrainian market.

 

Experts believe that due to the high sugar prices in 2020/21 MG the Central-southern regions of Brazil will increase sugar production more than now projected 27.5 million tonnes, which may lead to surplus of the world market. It is expected that in 2020/21 MG India will produce 32 mln tonnes of sugar, Thailand – 12.8 million tonnes, the EU – 15.79 million tons, South-Central Brazil – 27.5 million tons.

Visitors’ comments (0):