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Sweet Squeeze: Global Sugar Prices Dip as India's Output Surges

Sweet Squeeze: Global Sugar Prices Dip as India's Output Surges

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This is your Daily Sugar Price Tracker with Vanessa Clark podcast.

Welcome back to Daily Sugar Price Tracker, I am Vanessa Clark, and today we are talking about what is happening right now in the global sugar market and what that means for you.

Let us start with the headline everyone is searching for: the current sugar price. According to Trading Economics, world sugar futures are trading around 14 point 9 cents per pound, just under 15 cents. That is down slightly on the day, but up a bit over the past month, even though prices are still far below where they were a year ago.

On the futures side, Barchart reports that New York world sugar number eleven contracts recently pulled back after hitting about a three week high, helped earlier by tighter export supplies from India, which capped shipments to around one point five million metric tons for the twenty twenty five to twenty twenty six season. At the same time, in China, Xinhua reports that May twenty twenty six sugar futures on the Zhengzhou Commodity Exchange closed lower, around five thousand one hundred thirty three yuan per tonne, showing some regional softness.

So why are sugar prices under pressure even with these export limits. One big factor is production. Agri Insite, citing the Indian Sugar Mills Association, says India’s sugar output for the twenty twenty five to twenty twenty six season is up about twenty eight percent year on year by mid December, with more than seventy eight lakh tonnes already produced. Strong cane yields and better recovery rates mean more sugar hitting the market.

In the United States, the American Sugar Alliance notes that the Department of Agriculture projects record sugar production near nine point four seven million tons, while at the same time consumers are cutting back slightly on sugary foods. That softer demand, together with strong supply, is another weight on prices.

Here are a few quick takeaways you can use. If you are a food business or baker, current world sugar prices around the mid teens in cents per pound are relatively low versus historical peaks, so this can be an opportunity to lock in costs through contracts with your suppliers. If you are a farmer or mill, keep a close eye on export policies from major players like India and Brazil, because even small quota changes can swing world prices. And if you are simply tracking sugar prices for budgeting, knowing that production is strong and demand growth is modest suggests prices may stay under upward pressure in the near term, barring weather shocks or policy surprises.

That is it for today’s Daily Sugar Price Tracker with me, Vanessa Clark. Thanks for hanging out with me and checking in on the latest sugar price news. Be sure to subscribe, share this with a friend who watches commodity prices, and tune in next time for your next daily update on the global sugar market.

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