Sugar futures in the US remained near the 15 cents per pound mark in January, trading at a narrow range since mid-November and holding the sharp decline from the previous year on expectations of ample supply. Industry players noted that the global sugar market will likely have a surplus of over 2 million tonnes in the current marketing year. This was led by strong supply out of India, the world’s second largest producer, which drove mills to score 180,000 tonnes in export contracts as bumper yields pressured local prices. In the meantime, output from Brazil is expected to ease slightly from the previous marketing year, as high fuel prices in the country drive sugar producers to divert crops to more-profitable ethanol blenders instead of sugar mills. The rebound in the Brazilian real also limited the softer prices, offsetting the decline in the Indian rupee.
