Resulting from high yield, export of sugar from its largest manufacturer, Brazil, has considerably dropped in comparison to last week when it was profitable.
At domestic market sugar supplies have proved to be more profitable by 11 percent in comparison to the week before last when sales used to amount to 6.9 percent. Last week sugar price dropped by 3.1 percent, which equals to 23.3 dollars per 50 kg.
During the first half of September sugar production has considerably risen in Brazilian region Center South, namely, by 14 percent. Following the season of heavy downpour in May-June, dry weather in autumn has speeded harvesting.
According to analysts, sugar price in San Paolo has been falling in September. This may have been caused by rumours about heavy downpour in future, as they may interrupt harvesting. Prices may have also risen because of the fact that Indian demand (India is the largest consumer worldwide) has proved to be higher than expected.
The prices will be kept high by predicted deficit of Brazilian yield because of weather condition, smaller production in Thailand, and recently lowered assessment of Indian yield and high consumer demand for it in India.
Let us remind that Brazilian sugar industry is the largest worldwide, and settlement of Brazil as a state is closely connected with sugar production. Coffee, cattle farming, and sugar cane processing are the three pillars that form Brazilian economy.
