Sugar futures drop after a dry season gives a double boost to Brazil output
Sugar futures prices slumped lower after the industry data reports that Brazilian mills hasten production of sugar even faster than how investors predict it to be, as a dry season boosted the harvest for cane and the overall quality of the crop.
Raw sugar futures for the month of October, Which has been trading flat in the run-up to the statistics from the industry group Unica, slumped to 13.98 cents per pound at one point, which is a drop equal to 2.9%.
The Unica report shows that mills in the Centre South was responsible for some of the 90% of the Brazilian sugar output, which produced 3.10 million tons of sugar in the first half of this month. The produce is 2.97 million tons above in the seconds half of June.
Analysts estimate that a prevailing dry weather will mean that mills will lose only 0.3 days of crushing to rains in the first half of July, compared with 1.6 days from June overall.
Centre South mills in facts crushed, at 47.8 million tons which is just a little less cane during the first half of this month than the 48 million ton forecast by the investors, although this represent a s slight move into the positive notes on the 47.6 million tons processed in the second half of June.
Sugar levels were "favored by the climate in the Centre South, Dry and without rainfall during the first half of July" Unica stated.