In latest instances, the sugar market has been on a rollercoaster experience, with world provides dwindling and costs oscillating. Be a part of Subramani Ra Mancombu and Matthew Biggin, a commodities analyst from BMI primarily based in London, as they dissect the complexities of the sugar market and supply invaluable insights for companies and traders.
With sugar costs round $0.22 per pound, there’s concern over provide shortages, notably on account of points in India, Brazil, and the affect of El Nino on Asian provides. The dialog then shifts to the important thing query: How will the sugar market behave in 2024.
In accordance with Matthew, regardless of a latest decline in costs, there’s an expectation of continued elevation in comparison with historic averages. He attributes this to India’s resolution to limit sugar cane use in ethanol manufacturing and Brazil’s record-breaking sugar exports. The dialogue unfolds with a deal with Brazil’s dominance within the world sugar commerce and the potential challenges it would face within the coming months.
How will the market stability for 2024 be for 2024? Matthew elaborates on the worldwide sugar surplus of roughly 0.5 million tonnes, pushed by Brazil’s elevated manufacturing. Nevertheless, he hints at a possible deficit within the 2025 season, emphasizing the position of India and Brazil as vital gamers in figuring out world provide dynamics.
Additionally mentioned in the course of the dialog is the affect of El Nino on sugar cane. Matthew particulars how this phenomenon has influenced world sugar costs, notably in India and Thailand. Whereas there’s optimism about an easing El Nino, the repercussions on the 2024-2025 crop are already seen.
Matthew explains the affect of coverage modifications, pricing dynamics, and world power tendencies on the allocation of sugar cane for ethanol manufacturing, particularly in Brazil.
The podcast concludes with a more in-depth have a look at India’s position within the sugar market, its manufacturing challenges, and the fragile stability it maintains between home priorities and world market affect.
Host: Subramani Ra Mancombu; Producer: Siddharth Mathew Cherian
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