Sugar prices fall in anticipation of the harvest in Brazil
In Chicago futures for raw sugar fell after oil prices were up 13.3 $/lb or 293 $/t
Weather in Brazil contributes to a good harvest of sugar cane, therefore, from the beginning of the processing season in March – April the market will be to push a significant volume of proposals of sugar. This season, the oversupply of sugar will amount to 5-6 million tons, therefore, Brazilian producers will increase the processing of cane to ethanol to 50% and more, while reducing production of sugar. Processors hope that the government will retain a 20% tariff on ethanol imports from the United States that support domestic prices will increase ethanol production and reduce the production of sugar.
due to the fall in world prices, the volume of sugar exports from Ukraine over September-January 2017/18 MG decreased to 250,06 thousand tons, which is twice lower than the indicator of the corresponding period of the previous season. However, in January sugar exports increased in comparison with December by 64% to 76.4 thousand tons.
the Main consumers of domestic sugar were Turkey (25%), Uzbekistan (23%), Libya (15%). In addition, 7.2 thousand tons of sugar acquired Sri Lanka.
the Strengthening of the national currency will lead to a decrease in purchasing hryvnia prices and lower profitability of exports and, consequently, the rate of growth in the second half of the season.