White sugar futures on the ICE exchange immediately hit $470.20 per ton, which is the lowest level since September 2021.
Sugar prices hit their lowest level in more than three years on Monday, January 20, amid news that India, the world’s second largest producer, will allow the export of one million metric tons of sugar this season. In the previous season, New Delhi did not allow exports. It was reported by Reuters.
New Delhi’s decision came as a surprise to some traders as production is expected to be lower than consumption this season for the first time in 8 years.
White sugar futures on the ICE exchange immediately hit $470.20 a ton, the lowest level since September 2021.
They later traded 1% lower at $473.60 a tonne, down more than 5% year to date.
Sugar commodity futures were quiet due to US celebrations but closed up 1% at 18.22 cents a pound on Friday.
India’s production could drop to about 27 million tons from 32 million tons that year and fall short of annual consumption of more than 29 million tons.
Sugar prices have also come under pressure this year due to concerns that Thailand may sell more sugar due to the suspension of syrup exports to China.
As we already wrote, the European Union introduced protective duties on eggs and sugar from Ukraine on July 2 due to excessive import volumes.
Source: korrespondent
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