**Sugar Prices Surge Amid Weather Concerns**
On Monday, July NY world sugar #11 closed up 2.22% at +0.31, marking a three-week high, while August London ICE white sugar #5 rose 2.07% at +9.60. The rise in sugar prices is largely attributed to concerns over weak monsoon rains in India, which are expected to adversely affect sugar yields and reduce the country’s cane harvest. As of June 29, India’s cumulative monsoon rainfall was reported at 42% below normal, with meteorologists warning that this could be the weakest monsoon in 11 years.
Brazil is also experiencing shifts in sugar production, with Unica reporting a 2% year-on-year decline in sugar production to 6.838 million metric tons as millers focus more on ethanol production. The proportion of sugarcane used for sugar has fallen to 41.42%, down from 50.09% last year. Additionally, the National Oceanic and Atmospheric Administration (NOAA) has predicted a 67% chance of a “Super El Niño” this year, which could further impact rainfall in key sugar-producing regions such as India and Brazil.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
