On March 13, raw sugar futures rose by 2.1% due to dry weather in Brazil and reduced production forecasts in India, which lowered expected output. Cocoa prices fell while robusta coffee increased slightly amid slow farmer sales in Vietnam.
On March 13, 2023, raw sugar futures rose, driven by dry conditions in Brazil and declining production estimates in India. Raw sugar settled at 19.25 cents per pound, reflecting a rise of approximately 6% over the past week. According to Rabobank, this bullish trend is attributed to concerns over rainfall in Brazil and a decline in India’s sugar production outlook.
India’s sugar production forecast dropped by 2.94% to 26.4 million metric tons for the season ending in September. Dealers expressed concerns regarding India’s ability to fulfill its one million-ton export quota, as local prices increased. Indian mills have secured contracts for 600,000 tons for the 2024/25 marketing year but are hesitant to make additional deals.
In related markets, white sugar rose by 1% to $538.70 per metric ton. Conversely, London cocoa prices fell by 148 pounds, or 2.3%, settling at 6,341 pounds per ton, with evidence of demand for March delivery contracts scheduled to expire. New York cocoa also decreased by 2.2% to $8,172 per ton.
Robusta coffee experienced a slight increase, settling at $5,528 per ton due to tight farmer sales, while Arabica coffee saw a decrease of 0.3%. Additionally, Brazil’s coffee exports fell by 12% in February as low bean availability affected market dynamics.
In conclusion, raw sugar futures are experiencing notable gains fueled by adverse production forecasts in both Brazil and India, while cocoa prices are declining ahead of contract expirations. The coffee market is mixed, with robusta coffee seeing price support from limited farmer sales, whereas arabica and Brazil’s exports showcase a downturn. Market dynamics remain volatile, warranting close monitoring.
Original Source: www.livemint.com
