Brazil News Drives Sugar Prices Higher
According to the FAO’s food price index, sugar prices dropped by 4.7% in August, reaching the lowest level since October 2022. This decline was influenced by increased sugar production in India and Thailand, as well as falling international crude oil prices.
However, by the end of August, news from Brazil sparked an upward trend in sugar prices. Fires in Brazil have damaged sugarcane fields, and ongoing drought since last October has reduced crop yields.
The decrease in production, particularly in Brazil’s Central-South region, has led to rising prices. It is reported that last month’s fires affected 450,000 hectares of sugarcane area. Consequently, futures contracts for raw sugar have surged to their highest levels since 2008.
The significant damage caused by increasing fires and drought is highlighted, which has triggered a spike in sugar prices. This situation is also impacting the prices of other commodity products like coffee and cocoa, complicating cost structures and pricing in the beverage and confectionery sectors.
Source: Tarım Haberleri
John Peterson graduated with a degree in Agricultural Sciences from Wageningen University in the Netherlands. His specialization is in sustainable crop production and soil health management. John is passionate about integrating modern technology with traditional farming methods to enhance productivity while preserving the environment. He currently works as a consultant, helping farmers adopt sustainable practices.