US sugar prices recently witnessed a slight downturn amid higher supplies

Recently, sugar prices experienced slight fluctuations in their trend, with a downward movement followed by a modest uptick. In the US, prices decreased due to an increased domestic sugar supply, driven by higher beet sugar production and imports. Additionally, improving weather conditions in Brazil raised expectations of a stronger harvest, boosting sugar production and exerting downward pressure on global prices. The anticipated rise in sugar exports from Thailand, following the suspension of syrup exports to China, further contributed to the global supply increase, pushing prices lower.

Global sugar prices recently reached a three-year low, pressured by factors such as India's sluggish export pace, which reduced market activity and contributed to declining prices. Indian mills held off signing export deals, anticipating a future rise in global sugar prices, which led to reduced immediate shipments and added to the global oversupply, further pressuring prices downward.

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However, sugar prices in the US saw a modest increase recently due to reduced sugar production in Brazil caused by adverse weather conditions, including droughts, floods, and fires. Commodity funds holding excessive short positions in sugar futures also contributed to the price surge through a short-covering rally. Additionally, fires in São Paulo state, which destroyed up to 5 million metric tons of sugarcane, further tightened the global sugar supply, supporting higher prices.