Sugar production in Brazil significantly below previous years' level

The data released by the Brazilian Sugarcane Industry Association Unica were also disappointing, showing that rain caused little sugar cane to be processed in the first half of July in the main Center-South growing region. 

Since the beginning of the season, sugar production has fallen 17% short of the previous year on account of a lower sugar content and a higher proportion of sugar cane going into ethanol production. 

"This is unable to boost the raw sugar price in an environment characterized by an extremely weak Brazilian real, the prospect of another robust crop in India in 2015/16 and high international stocks, however", says Commerzbank.