According to data made public by the reputable agency Bloomberg, this year sugar price has fallen by 17%. The reason for this was the increase in production and surplus of goods created by this increase. This is the second unsuccessful year for sugar. Experts insist that in 2019 the situation will not change.
The prices were supported by the demand for cane, which is used for ethanol production in Brazil. Due to the fall in oil prices, it will become more profitable to produce sugar, which will only increase the surplus. In 2019, the volume of the production in Brazil will rise totaling almost 29 million tons.
Meanwhile, raw sugar contracts are going down. They now cost 12.5 cents / lb. In the summer, the price showed a 10-year low, dropping to 9.9 cents.
We advise you to pay attention to this asset, before the new year it will retain some volatility, usually unusual for goods.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade