The Market in July
July witnessed the return of hostilities in the Persian Gulf, which sent global energy prices sharply upwards. Brent crude rose from USD70/bbl at the start of the month, briefly hitting the USD100 mark, and ended July around USD90/bbl.
The rally in oil prices, however, had little effect on sugar, with the nearby October contract trading between USD14.5-15.5 cents/lb for virtually all of July and ending the month towards the bottom of this range. Nevertheless, the ISA Daily Raw Sugar Price did rise in July, averaging USD14.8 cents/lb, a USD0.9 cents/lb or 6% increase from June. Values have since found some support in early August, on the prospect that India may need to cover a supply gap through imports ahead of the start of the new campaign.