India may export over 3 million tons of sugar in the new season (it just started on October 1st). This move is aimed at getting rid of the excessive supply in the domestic sugar market. India bets on the demand in South-Eastern Asia.
Meanwhile, China decreased its sugar import by 4% during the period of January through August. The forecast for the season is 13 million tons against 12.8 million stated in the previous forecast.
The sugar production in Thailand may exceed 11 million tons. For comparison sake, the forecast is 10.8 million tons. The 2012-2013 harvest figures are around 10 million tons.
Meanwhile, the US beetroot harvesting campaign is underway. According to the report published by Crop Progress, only 6% of the crop is harvested at this point as compared to 9% - the 5-year average.
According to the report published by UNICA, Brazil produced 2,962 million tons of sugar within the first 2 weeks of September, which is 5.56% less than a year ago. 42,844 million tons of sugarcane was refined during the reporting period.
As for Russia, heavy rains may affect the sugar yield in the 2013-2014 agricultural season, which started in September. It may fall below 3.5 million tons as compared to 4.3 million tons in the 2012-2013 season.
The bottom line:
The overall situation in the global market of sugar hasn’t changes a lot and is still pressed by overproduction. Still, rains in Brazil provide some minor support to the price.
Courtesy of the Commodity Trading Department of Masterforex-V Academy.
