Sugar price fell to its minimum

Prices for sugar decreased by 25% to the lowest level in the last few years, Interfax-Ukraine informs.

This decline is caused by concerns of a surplus supply in the global market and a depreciation of the Brazilian real.

Futures for raw sugar fell by 3% during the trading on the Intercontinental Exchange (ICE) on Wednesday to USD 0.106 cents per pound, which was the lowest since September 2015. Since early 2018, prices have fallen by 25%.

A dramatic increase is expected in sugar production in India and Thailand in MY2018. The decline in the rate of the Brazilian real, the national currency of the world's largest sugar exporter, to the US dollar increases the incomes of local producers and stimulates the growth of supplies.

Reference: sales volumes of sugar produced by the agri-industrial holding Astarta-Kyiv decreased 34% to 48.62 thou. tons in Q1 2018.

Note: Ukrainian sugar market in 2017 was dominated by 10 companies.