Global Sugar Prices Drive India’s Market
India’s sugar market is gearing up for price increases as global sugar prices soar to their highest levels in nearly seven months. Speculators in the global market have pushed prices higher due to concerns about Brazil’s shrinking sugar supplies. This surge will likely affect India’s domestic sugar prices, especially during the festive season of Navratri and Durga Puja.
Speculators Boost Global Sugar Prices
Speculators in the global market have driven raw sugar futures up by USD 0,49 per kg, bringing the price to USD 4,94 per kg. At one point, prices briefly crossed USD 5,06 per kg, marking an 18 to 20 percent rise over the past week. Stephen Geldart from Czarnikov pointed out that speculators have plenty of room to push the market even higher, with predictions suggesting prices could reach USD 5,28 per kg.
Brazil’s Drought Hits Sugar Production
Brazil’s ongoing drought has caused a sharp decline in sugar production, further fueling the rise in prices. Wilmar, a major global commodity company, recently revised its forecast for Brazil’s central-south region to between 388 million and 408 million tonnes, down from an earlier estimate of 420 million tonnes. The severe drought has significantly impacted Brazil’s sugar production, making it a key factor in global price movements.
Indian Sugar Prices to Follow Global Trends
With global prices rising, India’s sugar market is expected to follow suit. Domestic demand, fueled by the festive season, will likely lead to fluctuating prices in the coming days. The market will closely track global trends, particularly as Navratri and Durga Puja drive up local consumption.
Conclusion: Sugar Prices Set to Stay High
India’s sugar prices will likely remain elevated in the coming months, with global supply challenges and high demand during the festive season playing major roles. Traders and consumers should prepare for continued price increases as global and local factors shape the market.
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