(Bloomberg) -- Raw sugar fell to the lowest in nearly two years weighed by a selloff in the broader global markets while strong Brazilian shipments and the prospects of higher output in India boost the supply outlook.
The most-active contract fell as much as 2.5% to 17.64 cents a pound, the lowest since October 2022. The world’s top sugar producer Brazil has exported about 20 million tons of sugar since the start of the year to July, up 40% compared to a prior year, according to a note from Claudiu Covrig, lead analyst at Covrig Analytics.
“The market might remain pressured by the incoming Brazilian spot volumes and by the decision of funds to stay short,” Covrig said.
Still, the export pace could take a break starting November to December or even earlier if the rainy season starts on time in October, he added.
A favorable monsoon in India, the world’s second-largest grower, is expected to boost cane output, adding to a global supply. The season runs from June to September and rains are so far 6% above normal, according to the India Meteorological Department.
READ: Good Monsoon Rains Help Indian Farmers Plant More Rice, Pulses
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