Commodities Buzz: Global Sugar prices attempting to recover from five-year low

Global Sugar prices are trying to recover from a near five-year low as markets assess demand-supply scenario amid an uncertain US trade climate following the latest tariff related developments. The NY Raw Sugar zoomed to two-week high above 14 cents per pound with strength in the Brazilian real also boosting prices. The real jumped to around 18-month high against the dollar and a sustained rebound in it could weigh on Sugar exports from Brazil. Tariff worries stay in place after US Supreme Court struck down President Trump's tariffs. However, the US U President Donald Trump said on Saturday he will raise temporary tariffs on almost all US imports from 10 per cent to 15 per cent, the maximum level allowed under the law. Meanwhile, UNICA has recently reported that sugar production in Brazil's Center-South in the second half of January fell by 36% y/y to 5,000 MT. There are worries over declining cane productivity in key Indian sugar producing states like Uttar Pradesh and Maharashtra too.

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