FAO: sugar price has risen in the world by 10% in a month

In September 2023, the average value of the FAO Food Price Index (FPPI) remained virtually unchanged compared to the value in August and amounted to 121.5 points: the increase in price indices for sugar and grains was offset by a decrease in price indices for vegetable oils, dairy products and meat. At this level, the index value was 14.6 points (10.7 percent) lower than the corresponding level of last year and 38.3 points (24.0 percent) lower than its record value recorded in March 2022.

The average value of the FAO Sugar Price Index in September was 162.7 points, which is 14.5 points (9.8 percent) higher than its August value; Thus, this indicator, which continued to grow for the second month in a row, reached its highest value since November 2010. This price hike is mainly due to rising concerns over supply tightening in global markets in the 2023-2024 season. This trend comes as early forecasts indicate a decline in production in leading sugar-producing countries Thailand and India, presumably due to the arrival of El Niño and the associated drier-than-usual weather conditions. The overall increase in world sugar prices was also supported by higher world crude oil prices. However, a successful harvest campaign in Brazil amid favorable weather conditions, as well as the weakening of the Brazilian real against the US dollar, were headwinds preventing global sugar prices from rising more significantly this month.