Brazilian supply expected to increase significantly + demand weak, New York sugar prices continue to fall.

Due to the expected significant increase in supply from Brazil, the largest sugar producing country, coupled with concerns about demand in markets such as China and Indonesia, raw sugar prices in New York have fallen. Analyst Claudiu Covrig of Covrig Analytics stated that production in Brazil in the second half of August could reach as high as 3.95 million tons, higher than the estimate by industry association Unica for the first half of August. He said this would help increase inventories. Unica is expected to release production data on Wednesday. Raw sugar futures prices in New York fell by about 1% on Wednesday, marking the second consecutive day of declines. Covrig stated that sugar inventories in Brazil could increase from 9.4 million tons at the end of August to 11.6 million tons by September 30, which will "continue to put pressure on the market." Covrig mentioned that due to China's previous heavy imports and ample stocks, demand for sugar has greatly decreased. He also pointed out that India and Thailand have temporarily stopped importing raw sugar to support local farmers. Meanwhile, India and Thailand are expected to have a bountiful harvest. However, Covrig noted that sugar refineries in the Middle East and Africa have been purchasing raw materials from Brazil, indicating early signs of recovery in demand in some regions. As of the time of writing, raw sugar prices in New York have fallen by 0.8% to 16.43 cents per pound. London white sugar prices dropped by 1.4%.