Positive outlook ahead for sugar prices

Raw sugar prices reached their lowest levels since 2008, reports Rabobank’s Sugar Quarterly Q3.

The weakening Brazilian real – coupled with concerns about the impact of slowing global economic growth on commodity prices in general – saw funds maintaining a net short position for much of the third quarter.

According to the report, it heaps further pressure on a market already groaning under the weight of stocks accumulated over the last five years.

Nevertheless, prices rebounded during September, amid a growing consensus that the 2015/2016 international crop year should see a swing to a global deficit (currently projected by Rabobank at 4.8 million tonnes), putting an end to an unprecedented five consecutive years of surplus and stock build up.