World sugar prices hit their highest in 12 years
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The price of white sugar futures on the London Stock Exchange rose to its highest level since 2011. During trading today, April 11, sugar prices reached $705.5 per ton.
As of 19:05 Moscow time, sugar on the London Stock Exchange is trading at $700.5 per ton.
According to Bloombergthe reason for the unprecedented rise in prices could be expectations cuts sugar exports from India by market participants, as well as a decrease in supplies from other countries, including Pakistan and Thailand.
In addition, some market participants believe that the recent rise in oil prices may motivate Brazilian and Indian mills to divert more sugar cane to ethanol production, since fuel production is now more profitable.
Brazil’s supply of sugar to world markets is falling due to rising gasoline prices in the country, which has also forced consumers to switch to biofuels and ethanol. As a result, a significant portion of the sugar cane goes to the production of these particular goods, and the supply for the food industry is reduced.
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