Sugar prices are moving to new highs as supplies tighten. Brazil, the world’s largest producer of sugar, saw output this year drop below that of 2020/21. China’s production is also below 2021 but demand is growing. Initial concerns might turn to biofuel but human consumption is the cause of 95.5 percent of disappearance.  Assuming normal weather, global sugar production should rebound due to the higher return it now presents. In the final analysis, global sugar production is highly cyclical. Current higher prices may compel more speculators into the market, but managing their positions becomes the more important factor.  ...

TAGS – Softs, North America