Brief Market Overview: White Sugar Price Drops to Six Month Low

112 words / less than a minute reading time  

• White sugar prices have dropped to six month lows in the past two weeks.
• Having peaked at $454/mt last month, the price has since moved to below $330/mt.
• Lockdown measures are not being eased anywhere apart from in China at the minute, meaning sugar consumption remains affected.
• This reduction in consumption, along with the fall in crude oil and the weak BRL has pushed the sugar market lower.
• However, despite such low prices, it remains profitable for Brazilian mills to produce raw sugar this year due to the weakness of the BRL.
• This is concerning for the world market, with overproduction on the cards once again.