Two Sugars? No Thanks, I Can Only Afford One
White sugar futures in London hit an all-time high of $505.90/tonne yesterday as spec money found a new gravy train.
Unlike the grains sector global demand for sugar is outstripping supply, by an estimated 6-9 MMT this year.
Planting of sugarcane in India is down 10-15% as monsoon rains have eluded top-producing states in the north of the country. Uttar Pradesh, the nation’s second-largest sugar producer, has declared drought in 47 districts.
There are potential implications for the grain markets here too if spec money suddenly rekindles it's interest in commodities as a chance to make some easy money.
Planting of winter wheat in India, the world's second largest producer and consumer, isn't too far away either. The same states that are suffering drought now are also India's top-producing wheat regions. Winter wheat here is heavily reliant on irrigation from resevoirs normally overflowing with abundant monsoon rains.
The largest wheat producing state in India? Uttar Pradesh.
Oh no, I'm starting to get bullish again. Nurse!
Unlike the grains sector global demand for sugar is outstripping supply, by an estimated 6-9 MMT this year.
Planting of sugarcane in India is down 10-15% as monsoon rains have eluded top-producing states in the north of the country. Uttar Pradesh, the nation’s second-largest sugar producer, has declared drought in 47 districts.
There are potential implications for the grain markets here too if spec money suddenly rekindles it's interest in commodities as a chance to make some easy money.
Planting of winter wheat in India, the world's second largest producer and consumer, isn't too far away either. The same states that are suffering drought now are also India's top-producing wheat regions. Winter wheat here is heavily reliant on irrigation from resevoirs normally overflowing with abundant monsoon rains.
The largest wheat producing state in India? Uttar Pradesh.
Oh no, I'm starting to get bullish again. Nurse!