Prices for sugar are rapidly rising due to fires in Brazil: crops are under threat, experts predict a deficit.

Last week, sugar prices suddenly soared. The October NY world sugar #11 (SBV24) closed on Tuesday 0.56 points higher than the previous level, which is 2.94%. October London ICE white sugar #5 (SWV24) also showed an increase, exceeding the previous level by 22.30 points or 4.24% (according to Barchart report).

The increase in sugar prices is related to massive fires in Brazil, which were triggered by drought and high temperatures. They have seriously damaged the sugarcane crop in Sao Paulo, the leading sugar producer in Brazil. Orplana, a group of sugarcane producers, reports that about 2000 fires over the weekend destroyed plantations covering an area of about 60,000 hectares. The company Green Pool, specializing in commodity markets, estimates the sugar cane crop losses from fires up to 5 million tons.