Sugar prices continue to rise on the New York and London Stock Exchanges while production in India, which competes with Brazil for the place of the world’s leading producer, is announced to be falling. Changes in fuel taxes in Brazil are also supporting prices.
In London, a tonne of white sugar on the futures market reached 630 dollars per tonne, a 10-year high. In New York, a pound of raw sugar was trading at $0.22, its highest in almost six years. Sugar prices rose over the week on supply concerns, with the situation in India in sight as the country is central to global supply. “The world is still short of sugar,” said Price Group analyst Jack Scoville.
“Indian production is expected to be less than 33 million tonnes this year”, he specifies. Thailand, the world’s third largest sugar exporter, is also expected to see its level of production decline. European production is expected to be reduced once more this year. And in China, sugar production this season might be the lowest in six years “due to poor growing conditions”, adds Mr. Scoville.
As for metals, the price of gold remained at a high level throughout the week without managing to clearly put behind it the symbolic cap of 2,000 dollars an ounce, competing with the dollar for the status of safe haven. in a worried market.
Finally, the price of copper ended the week on the rise, due to the depletion of stocks which is tightening the market and expectations of an economic recovery in China. Metal should also benefit from a growing process of electrification.
