Sugar futures were climbing on Wednesday amid concerns that production from one of the sweetener's largest producers is poised to drop, according to Bloomberg.
Trailing only Brazil for global output of the soft commodity, India is poised to generate the least amount of sugar in four years for the year that began on October 1, according to estimates cobbled together by the news source. Production is likely to slump by 6.4 percent to amount to 23.5 million metric tons.
"Lower Indian production is constructive for prices and the trend in prices is changing," senior vice president Michael McDougall with Newedge told the news source on Wednesday. "Financial issues with Indian producers will cut cane planting for next season."
At 11:54 a.m. on Wednesday, sugar futures climbed 2.24 percent, a 0.0037-cent lift to 16.87 cents per pound.
Reuters reports Indian sugar mills shipped 850,000 tons of the soft commodity last month, which included 450,000 tons of the raw form of the sweetener. Exports of sugar were supported by the government of India as the subcontinent trails only Brazil for global production.
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