Sugar to remain positive on wet Brazil weather, weak Indian monsoon
Saturday, 21 July 2012 | 00:00
Sugar prices could turn positive on wet weather conditions in Brazil and a lack of rain in India. Brazil and India holds the top positions in sugar manufacturing in the world.
The sugar output in Brazil’s center south, the main growing region was affected by Above-average rainfall in May and June., A fall of 29 percent in production to 6.7 million metric tons in the 2012-13 season through the end of June.
India’s monsoon, which brings more than 70 percent of the country’s annual rainfall, was 22 percent less than a 50- year average since June 1 also affects the sugar production.
At Intercontinental Exchange October sugar contract rose to 3-month high of 23.25 cents a pound tracking supply tightness in Brazil..
World sugar prices are projected to fall to a trough in 2012-13 as production peaks in India and rises in other countries and additional exports are placed on (or lower imports are drawn from) the world market, says OECD-FAO Agricultural outlook 2011-2020.
Brazil le is the the world's largest sugarcane producer with a 719,157,000 tons harvest followed by India with 277,750,000 tons.
According to OECD-FAO Agricultural outlook 2011-2020, International sugar prices are expected to ease back over the remainder of 2011 and into 2011/12, as production responds around the world to recent high prices and the global balance moves into a larger surplus that allows the start of stock rebuilding.
Source: Commodity Online
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