By Business AM
Raw sugar futures slipped further from a recent 11-1/2-year peak on the Intercontinental Exchange (ICE) following a weak demand from China and other high consumption countries.
July raw sugar was down 0.2 per cent to 25.49 cents per pound, while August white sugar lost 1.4 per cent to $701.60 a tonne.
Though sugar prices plunged following the close of Tuesday’s trade, dealers said. lower-than-expected output in India, Thailand and China had helped to fuel the recent run-up in prices.
Also, projections released on Tuesday by StoneX showed that the global sugar market is heading to a smaller supply surplus of 1.1 million tonnes in 2022/23 (Oct-Sept) from a March estimate of 2.5 million tonnes surplus, after frustration with crops in areas such as India, Mexico and the European Union.
According to projections released by the broker and analysis firm, the situation is expected to improve only slightly in the new season (2023/24) to a global supply surplus of 1.3 million tonnes.
The broker’s sugar production projection for India, the world’s second largest producer, was cut to 32.8 million tonnes in the current season that ends in September from 34.1 million tonnes seen in March.