Sugar Futures at Over 1-Month Low

US sugar futures extended their downward trend to trade around 18.5 cents per pound, the lowest since September, pressured by the weakness of the Brazilian real, fund selling and lower oil prices. The release of data showing a significant increase in Indian sugar production also weighed on prices. According to a major industry body, India’s sugar production surged by 745% year-on-year in October, as mills in Maharashtra began crushing sugarcane earlier than usual to boost supplies ahead of the festive season. In Brazil, however, recent data showed that sugarcane crushing and sugar production in Brazil declined during the first half of October, as persistent rainfall across the Center-South disrupted harvesting and delayed mill operations. El Niño appears to be affecting the region earlier than expected, with excessive rainfall complicating production prospects and raising uncertainty over the start of the next harvest.