Brief Market Overview: Lots of Supply, Consumption Falling

108 words / less than a minute reading time

• White sugar prices increased in the past fortnight after falling to six month lows two weeks ago; just last month, they peaked at $454/mt.
• Like oil, we think sugar consumption is being hit by the coronavirus’ lockdown measures; out-of-home consumption has decreased and prices have weakened as a result.
• Brazilian mills will maximise sugar production as ethanol demand and its returns are so poor.
• This once again means the world will produce more sugar than it consumes this year.
• This reduction in consumption, along with the fall in crude oil and the weak BRL continues to put pressure on the market.