Sugar prices continue to fall to new lows

The analyst of the World of NAN editorial board presents a brief overview of the world markets of agricultural products for February 19 - March 1.

Wheat prices in the world for the previous two weeks changed insignificantly. The price for soft wheat in Chicago fell by 0.6%, reaching $205 per ton. And hard red winter wheat rose by 2.1% to $213. Among the main news, we note the increase in wheat exports from Russia from 3 to 3.8 million tons in February, according to SovEcon, and for the 2023-2024 season SovEcon forecasts exports of 48.6 million tons. U.S. wheat exports from the U.S. also increased during the week of February 22. 327 thousand tons were exported, which is 40% more than the previous week and 15% more than the same week last year.

Also, the Ministry of Agriculture of Ukraine announced the start of sowing spring crops, so far 800 hectares of wheat have been sown.

But the prices for exported Russian wheat in the Black Sea ports continued to decline. The price index fell by 3.1% and was at the level of $239 per ton. The duty on wheat exports from Russia for these two weeks decreased by 6% and amounted to 3575.4 rubles per ton. According to the data of Kazakhstan commodity exchange ETS, there were still no deals on wheat in 2024.

Recall that the last deal was held on December 26 at a price of ₸136 thousand per ton of wheat with gluten 25-26% and 27%.

Sugar fell in price by 5.3% during these two weeks, thus again approaching the December minimums. The exchange price in London reached $603 per ton of sugar. A negative factor for the price continues to be the growth of sugar production in Brazil. There, in the first half of February, production increased more than 11 times compared to the same period of 2023, and reached 27 thousand tons. For the whole season, production growth was 25.6%, reaching 42.16 million tons.

In addition, March futures expired on the previous Thursday and saw the second largest sugar delivery in March, at 1.3 million tons, signaling difficulties in finding demand.

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