Prices for sugar are rapidly rising due to fires and drought in Brazil, one of the leading producers, as reported by the Bloomberg news portal.
Raw sugar futures have reached the highest weekly growth in the last 16 years, taking into account the damage caused by fires and heat that harmed the crop. In August, in the state of Sao Paulo, a key production region, a record level of fires was recorded due to a lack of moisture, which damaged the sugarcane roots and may require replanting or reduce yield in the next season.
Wilmar International has lowered its sugar production forecast in this region, noting that fires have affected up to 450 thousand hectares.
Rabobank analysts forecast that sugarcane processing could be halted by the end of October, and global sugar supplies could significantly decrease in early 2025.
The increase in sugar prices coincides with rising prices for other agricultural crops, including coffee and cocoa, which poses challenges for food producers.