Sugar mills in India sign export contracts in advance after frosts in Brazil

For the first time, traders in India signed sugar export contracts five months before shipments. The move follows a likely drop in production from Brazil, which has prompted buyers to secure supplies from the South Asian country in advance, five commercial sources tell Reuters.

Sugar production in Brazil, the largest sugar cane producer and exporter, should fall due to the drought seen since last year and due to recent frosts.

Traders consulted say the likely decline has already pushed sugar prices close to their highest levels in three years and is prompting buyers to secure supplies in advance from India, the world’s second-largest sugar producer.

So far, traders have contracted 500,000 tons of raw sugar for December and January shipments. According to them, the commodity was traded at between US$ 435 and US$ 440 per ton on a free-on-board (FOB) basis.

Source: Novacana

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https://www.novacana.com/n/acucar/exportacao/exportadores-acucar-india-assinam-acordos-antecedencia-geadas-brasil-290721

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