Raw sugar futures traded below 16 cents per lb, after touching last week its highest level since May 2017, as investors paused for breath following a recent rally. Sugar has been supported by hopes of a global economic recovery and low supplies in Thailand and Brazil. The 2020/21 crop year in Thailand is expected to decrease to 70 million tonnes from its target of 75 million a year due to the drought and fewer sugar cane plantations as Covid-19 pandemic affected demand for sugar-related products. In top producer, Brazil, drier-than-normal conditions in the center-south are likely to cause a decline in the next season crops at the time of already lower production as farmers allocated a significant portion of its cane production to its better paying domestic ethanol market. Looking ahead, sugar supplies are expected to remain tight at least until April, when output in Brazil may start to pick up again.
Historically, Sugar reached an all time high of 65.20 in November of 1974. Sugar - data, forecasts, historical chart - was last updated on January of 2021.
Sugar is expected to trade at 16.03 Cents/LB by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 14.27 in 12 months time.