Sugar futures continue to find new lows as the world’s biggest sugar producer has stepped-up output of the product. Sugar futures are at prices not seen since 2010 now that Brazil has effectively expanded the global “glut” of sugar production.
Brazilian sugar industry group “Unica” claimed yesterday in a report their biggest sugar growing region in the country’s center-south is already producing 4.4% more sugar than this same time last year. Sugar futures have already declined over 27% from this year’s high in March.
“Even though the (sugar) harvest in Brazil is starting to slow down, production for this season is still well outpacing demand. Additionally this is the fourth consecutive season of oversupply of sugar,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her insight regarding the current sugar futures situation.
The technical trend for sugar futures remains down with no bottom yet in sight. We are short sugar futures since last week on this entire last leg down.
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