Home / Commodities / Commodity News / Brazil’s new crop hedging hits highest amount in November -report

Brazil’s new crop hedging hits highest amount in November -report

Hedging of sugar exports for the next Brazil sugar season using raw sugar futures 0#SB: on ICE exchange reached 2.88 million tonnes in November amid higher prices for the sweetener and a weaker Brazilian currency, a report said on Friday.

According to hedging strategies adviser Archer Consulting, it was the largest monthly amount of hedging so far by Brazilian mills for the projected exports in the 2023/24 season which officially starts in April.

Archer said that cumulative hedging for the 2023/24 season so far amounts to 14.64 million tonnes, or the equivalent to 61% of expected Brazilian exports.

It estimated the average price on that amount of hedging at 17.27 cents per pound.

Brazilian mills are expected to earmark a high amount of cane to sugar production in the new season, as the sweetener continues to give better financial returns than ethanol.

There is still uncertainty regarding ethanol’s market share in Brazil next year compared with gasoline, depending on the policies of the new government that takes over on Jan. 1.
Source: Reuters (Reporting by Marcelo Teixeira in New York Editing by Matthew Lewis)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping