The number of vessels lining up to load sugar at Brazilian ports has continued to increase giving support to sugar prices which bounced back today after coming off recent 7 month highs. Both raw and white sugar futures rose in New York and London respectively but without revisiting previous 7 month highs. Over 100 vessels are now waiting to load sugar at Brazilian ports.
Excessive rains in India are also thought to have given sugar prices some support. Production figures will be watched to establish if output is likely to decrease. If production figures are seen declining significantly it is likely that this will result in further upward support of sugar prices. However, if the expected 10% fall in production is offset by higher production elsewhere in India then recent heavy rains will have had no significant overall impact on production or prices.
Meanwhile as a result of poor harvests this year and last Mexico is to import 100,000 MT between 10% and 15% of which is expected to come from Nicaragua. Mexico will not apply a tariff to the Nicaraguan sugar and will only charge up to 10% of the usual $360 per MT tariff to the remaining imports.
The above factors may see the markets test recent 7 month highs tomorrow.