{"id":1123,"date":"2025-06-17T16:42:56","date_gmt":"2025-06-17T16:42:56","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2025\/06\/17\/brazils-rising-sugar-output-drives-global-price-plunge\/"},"modified":"2025-06-17T16:42:56","modified_gmt":"2025-06-17T16:42:56","slug":"brazils-rising-sugar-output-drives-global-price-plunge","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2025\/06\/17\/brazils-rising-sugar-output-drives-global-price-plunge\/","title":{"rendered":"Brazil\u2019s rising sugar output drives global price plunge"},"content":{"rendered":"
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The global raw sugar market experienced a notable downturn on Monday, with prices plummeting to a four-year low. <\/p>\n

The commodity was trading just below 16 US cents per pound, a significant drop that has raised concerns among producers and traders alike. <\/p>\n

This sharp decline can be attributed to a confluence of factors, including robust global supplies<\/a>, a stronger US dollar, and subdued demand in key importing nations.<\/p>\n

However, the recent bearish sentiment was primarily triggered by a surprising surge in sugar production reported by Unica, the prominent Brazilian sugar industry association.\u00a0<\/p>\n

Specifically, Unica’s data revealed an unexpectedly robust increase in sugar output from Brazil’s Centre-South region during the latter half of May. <\/p>\n

This particular area is a crucial global supplier, and its heightened production figures introduced a substantial amount of additional supply into the market, leading to concerns about an impending surplus and subsequently driving prices lower.<\/p>\n

Production volumes increase<\/h2>\n

Production volume saw a 9% year-on-year increase, reaching 2.95 million tons, primarily driven by a greater volume of processed sugar cane.<\/p>\n

During the second half of May, a significant portion of the sugarcane harvest, specifically almost 52%, was directed towards sugar processing. <\/p>\n

This indicates a substantial commitment to sugar production within the agricultural and industrial sectors, highlighting its importance as a primary product derived from sugarcane. <\/p>\n

The remaining portion of the sugarcane would likely have been utilised for other purposes, such as ethanol production, jaggery, or animal fodder, depending on market demands and existing infrastructure. <\/p>\n

The efficiency of this processing and the overall yield would have been crucial factors in determining the economic success of the sugar industry during this period.<\/p>\n

In the same period of the previous year, the processing figure was just over 48%.<\/p>\n

Carsten Fritsch, commodity analyst at Commerzbank AG, said in a report:<\/p>\n

\n

Apparently, the low oil price had made the production of ethanol less attractive (in 2025), so that sugar mills increasingly focussed on sugar production.\u00a0<\/p>\n<\/blockquote>\n

Prices <\/h2>\n

A broker attributed the subsequent price recovery to a 4% decrease in sugarcane’s sugar content compared to the previous year, which otherwise would have led to a greater increase in sugar production.<\/p>\n

Fritsch said:<\/p>\n

\n

In our opinion, this is more likely to be an overdue rebound after the previous price slide.<\/p>\n<\/blockquote>\n

Speculative market participants’ positioning indicated an already highly negative sentiment. By early June, their net short positions, last seen over three months prior, had resurfaced.<\/p>\n

Net short positions continued to expand in the last reporting week.<\/p>\n

\u201cThis means that a lot of price-dampening news is likely to have already been priced in, which should limit further downside potential,\u201d Fritsch added. <\/p>\n

Despite the initial slump, the market saw a modest recovery later on Monday, with prices recouping some of their losses. However, prices on the Intercontinental Exchange were down more than 1% at the time of writing on Tuesday. <\/p>\n

The post Brazil’s rising sugar output drives global price plunge<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The global raw sugar market experienced a notable downturn on Monday, with prices plummeting to a four-year low. The commodity was trading just below 16 US cents per pound, a significant drop that has raised concerns among producers and traders alike. This sharp decline can be attributed to a confluence of factors, including robust global supplies, a…<\/p>\n","protected":false},"author":1,"featured_media":1124,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1123","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1123"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1123\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/1124"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}