Reed and refined (white) sugar rose on the background of reduction of supplies from Brazil. As Bloomberg writes, October futures on both types of raw materials rose last week for seven percent and almost reached a four-year high.
Prices for both types of sugar are now on a two-week peak. White Sugar July 16 was traded on the ICE stock exchange for $ 497 per ton, cane – about 44 thousand dollars per ton.
The cost of sugar rose and will continue to grow due to frosts in Brazil, who destroyed the crop crops. Sugar factories had to compensate for contract promises at the expense of existing reserves, and traders had space for price speculation.
Bloomberg experts believe that a new energy policy of India can be an additional factor in the rise in price, which is also a major sugar exporter. The Prime Minister of Narendra Modo decided to speed up the program according to which the ethanol share in the fuel to 20 percent by 2025. Indian authorities want to reduce carbon emissions, reduce dependence on imported oil and stimulate the production of sugar cane from which ethanol is obtained. However, experts fear that due to the focus on a cleaner fuel supply of sugar from India, and the prices for raw materials will continue to grow.