The price of raw sugar has dropped to a two-week minimum due to an increase in supply from Brazil.

The price of raw sugar has dropped to a two-week low due to signs of increased supply from Brazil, the largest exporter, as reported by Bloomberg.

Data from the industry group Unica, released last week, showed that Brazil produced more sugar than expected in the second half of May. In response to the situation, Commerzbank AG noted that dryness in the country reduced sugarcane yields but increased sugar content. The bank believes this may improve short-term supply, but they still predict a decrease in production volumes in Brazil below last year's levels.

The price of raw sugar fell by 2.3% in New York and by 2.2%, reaching 17.29 cents per pound in London.