Low supply from Brazil gives sugar prices a rush

Global white sugar prices started rallying in the beginning of August and had reached a four-and-a-half-year high of $504 per tonne as on 17th of the month, up 28% on-year. Inclement weather is affecting sugar production in Brazil and this, in turn, is expected to impact global supply in the upcoming sugar season (SS 2022; October 2021 to September 2022).

Brazil, the largest sugar producer in the world, is expected to produce just 29 million tonne of sugar in SS 2022 as against 41 million tonne in SS 2021.