New York: According to risk management firm Archer Consulting, Brazilian mills have strategically hedged approximately 4.5 million tonnes of sugar export sales for the upcoming 2024/25 season, representing roughly 17% of the projected exports. This estimated hedging volume is slightly lower compared to the same period last year when it accounted for 24% of exports. However, the positive aspect is that mills were able to secure a higher average price for their fixations, standing at 20.51 cents per pound versus 17.51 cents/lb, reports Reuters.
Archer Consulting’s report highlights that mills capitalized on the price surge witnessed in late April to hedge a substantial portion of their future sugar sales. During that period, raw sugar prices reached a nearly 12-year high, surpassing 27 cents per pound. While prices have since eased, they remain relatively elevated, currently hovering around 23 cents.
