Improving Weather Condition in Brazil Weighs on Sugar Prices
Feb, 28th 03:32
Sugar futures prices tumbled on Monday, stretching its downward rally to a fourth-consecutive trading day amidst improving outlook for production in Centre-South Brazil.
May raw sugar futures dropped more than 0.5% to trade at 19.29 cents a lb on Monday, falling to the lowest level since December 29, 2016.
According to a report published on Monday by Tropical Research Services, the weather in Centre-South Brazil had been favorable since December. As a result, TRS upgraded its forecast for the area’s production to 35.7 million tonnes from a previous projection of 35.5 million for 2017/18 crop. As stated by analysts, this level of output “would be enough to keep the market well-supplied”.
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