Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Sugar May Fall Below 19 Cents Soon, Marex Spectron Says

The price of raw sugar traded in New York may fall below 19 cents a pound “very soon,” prompting processors in top producer Brazil to make ethanol rather than the sweetener, Marex Spectron Group said.

Sugar has fallen 8.4 percent on ICE Futures U.S. in New York this year, as supplies outpace demand by 6 million metric tons, up from a previous forecast of 5.2 million tons, according to the International Sugar Organization in London. The price was at 21.34 cents a pound by 6:28 a.m. Below 19 cents a pound, millers in Brazil would favor production of the biofuel, Marex Spectron said, referring to the variety used in flex fuel cars.

“Logically, sugar prices have to go down below that level very soon, before the crop gets into full swing,” Paul Bannister, head of sugar brokerage at the company in London, wrote in a report e-mailed today.

Sugar prices may need to go “well below” 19 cents and stay at such levels “for a major part of the harvest” to trigger millers to switch to maximum ethanol production, he said. The harvest in Brazil, which usually begins in April, is set to start on May 1, according to ICAP do Brasil Ctvm. Millers there make both ethanol and sugar from raw material sugar cane.

“Even if most mills make the maximum of ethanol and minimum of sugar, there will almost certainly still be a reasonable sugar surplus,” Bannister said.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.