Sugar Futures at Near 2-Month Low

US sugar futures eased to near 18 cents per pound, their lowest level since mid-September, amid prospects of increased supply from India. Recent data from the Indian Sugar and Bioenergy Manufacturers Association (ISMA) showed that the country produced 1.29 million tons of sugar between October 1 and November 5, almost four times the 320,000 tons recorded in the same period last season. Meanwhile, the weak Brazilian real is boosting export competitiveness, while lower oil prices are reducing ethanol's relative attractiveness, potentially encouraging mills to favor sugar production. However, persistent El Niño-related rains in Brazil's Center-South have hampered sugarcane harvesting and milling. The weather phenomenon appears to be affecting the region earlier than usual, with excessive rainfall complicating production prospects and raising uncertainty over the start of the next harvest.