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Far-Ahead Sugar Futures 'The Best Bet'

07 September 2010

BRAZIL – Promising sugar futures contracts could prove a better bet than near-term lots as reduced hold-ups in Brazilian ports dampen fears for immediate supplies, while concern over next season's crop are uplifted by dry weather.

According to, Societe Generale analysts have suggested that the premium held by near-term contracts may reduce and even reverse.

The forecasts partly reflect anticipation that the bottlenecked ports in Brazil, the world's biggest exporter of sugar, will be resolved over the coming weeks as the rush for buyers to refill inventories passes by.

Emmanuel Jayet, from Societe Generale, told the news provider that many buyers had delayed purchases when prices peaked earlier this year, leaving them clamouring "in a hurry" for Brazilian new crop sugar.

"But demand will [weaken], and the bottleneck will be smaller," so price support for near-term futures will be reduced, he added.

Meanwhile, prices of sugar in the US have reportedly hit their highest price level in almost six months amid setbacks to crops in major producing regions.

TheCropSite News Desk

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