Sugar prices have soared 13% this week as severe weather conditions and widespread fires in Brazil, the world's largest sugar producer, threaten global supply chains.
Fires in Brazil have damaged up to 80,000 hectares of sugarcane, potentially reducing output by 5 million metric tons.
Sugar prices surge 13% in a week, with NY sugar hitting a 2-1/4 month high and London sugar reaching a 2-week high.
Drought and excessive heat have sparked massive fires in Brazil's top sugar-producing state of São Paulo. Up to 2,000 fire outbreaks are affecting 80,000 hectares of sugarcane, totaling estimated losses of up to 5 million metric tons of sugarcane. Consequently, Brazil's production for 2024/25 forecast is reduced to 39.2 million metric tons from 40.0 million metric tons.
Supply concerns stemming from Brazil's crop damage have propelled sugar prices upward, with New York sugar futures reaching a 2-1/4 month high and London sugar hitting a 2-week high.
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