The Market in January

Global sugar prices declined in the first half of January before regaining losses during the latter part of the month. Speculative selling, following December's price decline and potential trade policy concerns ahead of the US presidential transition, drove the market lower. However, a reversal in the weakening BRL exchange rate and a strengthening in the soon-to-expire March white sugar futures, reflecting tight trade statistics for the quarter, helped lift prices subsequently. The announcement of Indian exports, totalling 1 mln tonnes of whites, had limited impact on prices.