Raw sugar futures rose to 11-year high
[ad_1]
In recent days, the price of May futures for raw sugar on the US Intercontinental Exchange (ICE) rose to $0.24 per pound, the highest figure in 11 years. The reason for this was poor harvests of sugar cane in India, which is the world’s second largest producer of this product, as well as low yields in Thailand, China and Pakistan.
According to CNBCThe All India Sugar Trade Association lowered its forecasts for sugar production by almost 3%, from 34.5 million to 33.5 million tons, attributing this to heavy off-season rains in the state of Maharashtra, namely this state provides more than a third of all Indian sugar production.
Due to the rains, the harvest of sugar cane is also slowing down in the world’s largest sugar producer, Brazil. And according to forecasts of meteorologists, the region of Southeast Asia in May-June is waiting for El Niño – a natural phenomenon, accompanied by an abnormal increase in temperature on the surface of the water in the seas, which will also negatively affect sugar production.
Rising prices for raw materials may affect consumer prices for products containing sugar, analysts say. “Rising prices for confectionery and sugary drinks will include a rise in the price of sugar,” said Jon Stansfield, senior analyst at DNEXT analytics platform, adding that “processed food prices are also rising around the world.”
[ad_2]
Source link
