NYSE: FX rates and oil drive sugar prices

Sugar followed the rise of oil prices and the appreciation of the real against the dollar and rose on the New York Stock Exchange on Thursday. Sugar futures for October – the most heavily traded now – advanced 1.35% (23 points) to 17.24 cents per pound.

When oil rises, the demand for ethanol grows, a fuel that, like sugar, is derived from sugarcane. The Brent Crude price for August advanced 0.49% to $75.56. And the rise in the real, in turn, discourages exports from Brazil, the largest global producer of the sweetener, forcing buyers to offer more for the product. Yesterday, the dollar fell 1.16% to R$4.9034.

In terms of supply and demand, there are still concerns about Brazilian sugarcane fields, but a global sugar surplus in the 2021/22 season is forecast.

Source: Valor Econômico

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https://valor.globo.com/agronegocios/noticia/2021/06/25/cambio-e-petroleo-elevam-precos-do-acucar.ghtml

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