(Bloomberg) -- Raw sugar futures extended their retreat, hitting the lowest since September, on expectations that global supplies in 2025 will turn out better than initially anticipated.
The most-active contract fell as much as 1.9% in New York as traders focus on the outlook for top producers Brazil and India. There are bets that India could allow exports of raw sugar early next year, while the weather in Brazil is aiding cane crops.
In a note to clients on Thursday, Ricardo Nogueira, a StoneX senior risk consultant, pointed to recent moves by Indian industry representatives asking the government to allow as much as 2 million tons of exports. This has been a request made repeatedly by the Indian Sugar and Bio-energy Manufacturers Association.
In Brazil, frequent rains over cane growing areas are aiding crops before the new harvest that kicks off in April. Beneficial showers are expected across the country’s central and southeastern areas through yearend, as well as in the first weeks of January, according to Marco Antonio dos Santos, Rural Clima meteorologist.
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