Sugar Futures Post Biggest 1-Month Gain as India Monsoon Forecast Falls to 90%
Updated
Updated · Bloomberg · May 29
Sugar Futures Post Biggest 1-Month Gain as India Monsoon Forecast Falls to 90%
1 articles · Updated · Bloomberg · May 29
New York sugar futures logged their biggest one-day gain in a month as traders reacted to a weaker rainfall outlook for India, the world’s second-largest sugar producer.
India’s weather office cut its June-September monsoon forecast to 90% of the long-term average from 92% in April, raising the risk of lower cane yields.
El Niño concerns added to the rally by heightening fears that rainfall could weaken further and damage India’s crop during the key growing season.
The move underscores how weather risks in major producing countries can quickly tighten supply expectations and lift global sugar prices.
With a global surplus looming, why does India's monsoon forecast still dominate sugar prices?
Could high oil prices and ethanol demand turn a predicted sugar surplus into a sudden shortage?