Why Global Sugar Prices Might See A Rebound
On 8 th Nov, we had released a trade recommendation on sugar arguing that sugar prices are in for a rebound considering there was maximum bearishness. https://macro-spectrum.com/trade-recommendation/long-sugar Sugar prices on the time of release were $14.07/lb. Currently the same are at $14.93/lb and we expect further upswing. Further upward momentum can build once it crosses $15.23/lb, the 50 DMA on a weekly closing basis. We see the case for sugarcane mills in top grower Brazil to divert more cane for Ethanol than sugar considering the low sugar prices currently. In Brazil, millers can choose to make either sugar or biofuel from their cane, depending on what’s more attractive. As raw sugar futures slumped this year, there is a strong possibility that in the coming season mills might consider greater than anticipated ethanol production. Going into details, sugarcane production in Brazil’s Centre South region is expected to rise to 620 million tons in the 2026-27 season, compared...