This year has been quite a rollercoaster for international markets, especially when it comes to sugar prices. After experiencing significant highs, prices are now undergoing a correction as we approach the end of the year.
Global sugar prices are currently at an eight-month low, influenced by factors such as increased sugar production in Brazil, a key player in the global sugar market.
Brazil has set a new record for sugar production in November, marking the highest monthly output ever recorded. This surge in production has triggered some profit-taking in the markets, causing sugar prices to adjust.
On the other side, India is focusing on producing more sugar and less ethanol this year, indicating a potential increase in production.
A report from the Indian Sugar Mills Association (ISMA) reveals that from October 1 to December 15, sugar production was down by 10.7% compared to the previous year. Despite this, the overall sugar production target for the year is set lower at around 32.5 million tonnes, in contrast to the 36.7 million tonnes produced in the previous year.
Also Read
Thailand is also facing a decline in sugar production, expected to be nearly 36%, adding to the complexities of the global sugar market.
While global markets are currently witnessing profit-taking, market experts believe that this is a temporary phase. The fundamentals of the sugar market are not deemed weak, and there is an expectation of fresh buying emerging in the future.
In the Indian market, the focus has shifted towards the awaited ethanol price revision for the year 2023-24. With clarity on ethanol production from sugar and various molasses varieties, the market is eagerly anticipating this crucial piece of information before the year ends.
For more details, watch the accompanying video
(Edited by : Amrita)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
