Monday’s trading session witnessed Oct NY world sugar #11 (SBV23) closing with a gain of +0.53 (+2.33%), while Aug London white sugar #5 (SWQ23) concluded the day with an increase of +9.90 (+1.56%).
Sugar prices experienced a moderate rise on Monday, driven by indications of strengthening demand in the market. However, it is worth noting that the delivery to settle the July NY sugar contract, which expired last Friday, amounted to 412,400 MT. This figure stands at a substantial 70% below the average observed since 2010. This lower delivery volume suggests that suppliers are not holding significant stockpiles of sugar, reflecting robust demand in the market.
In the past two weeks, sugar prices have fallen sharply to the 2-3/4 month low due to the favourable climate in Brazil that has lowered the chances of damaging cane crops due to frost.
