The Strategist

Global sugar prices hit 12-year high

04/14/2023 - 03:26

White sugar futures on the London Stock Exchange are now worth more than they have been since 2011. Sugar per tonne traded at $705.5 Wednesday, April 11.

Marco Verch Professional Photographer
Marco Verch Professional Photographer
According to Bloomberg, market participants' forecasts of a decline in sugar export from India as well as a decline in supplies from other nations, such as Pakistan and Thailand, may be the cause of the unusual rise in prices.

Additionally, some market participants believe that the recent rise in oil prices may encourage refineries in Brazil and India to focus more sugar cane on ethanol production because it is currently more economical to do so.

Brazil's supply of sugar to international markets is decreasing as a result of the country's growing gasoline prices, which have also compelled customers to convert to ethanol and biofuels. As a result, the supply of sugar cane for the food business is decreasing because a large portion of it is required to make these specific commodities.