Sugar prices increased by 4.3 percent, reaching the highest level in 12 years, due to insufficient supply from supplier countries and fund purchases.
It jumped amid limited export prospects from key supplier India and sluggish supply prospects from other countries, including Pakistan and Thailand.
While it is stated that a productive harvest to be obtained in Brazil in the 2023 season can help alleviate the tightness in the market, Claudiu Covrig from Covrig Analytics points out that the lack of deliverable sugar before May, combined with the purchase of funds, raises prices.
“There is a serious need for the harvest from Brazil, but they have not arrived yet,” Covrig said. Soon the funds will drive the market and the rest will just be passengers.”
