Connect with us

Hi, what are you looking for?


Sugar prices hit 11-year high as weather impacts producers

Sugar prices are set to rise significantly in the next few months as extreme weather affects producers across the globe. An outlook of raw sugar futures shows the price has jumped to highs of 25 cents a pound to hit their highest level in 11 years. Prices are more than 35% up year-to-date and over 33% in the past year.

Amid the sharp increase of the price of the commodity are concerns that the costs of related food and beverage items will also spike. Among the costs to be passed to consumers are likely to be on bread, candy, confectionary, and soda.

How much food prices have increased in a single year:

🍞 Bread: 18.9%
🍝 Pasta: 24.1%
🍳 Eggs: 32%
🥛 Low-fat milk: 38.8%
🍩 Sugar: 42.1%
🫒Olive oil: 49.2%

— Mind, Body & Sole (@MindBodySoleUK) April 24, 2023

The overall picture in international sugar prices could also impact the US Federal Reserve’s battle against inflation given rising food prices.


US #food prices rose over 8% YoY through March.

The recent rally in international sugar prices may cause processed food prices to increase.

This would present a challenge for the Federal Reserve in its fight against inflation.📈🍴🛒 #Fed #inflation

— Teucrium ETFs (@TeucriumETFs) April 24, 2023

Sugar prices set to remain elevated

According to market observers, the prices for sugar have seen a major uptick in the past several months, with the situation not helped by the extreme weather conditions in major sugar producing countries.

In this case, the bullish outlook for sugar is expected to hold and could see prices increase even further. Helping this perspective is the fact that the cane crushing season across Asia is ending and what’s been seen so far are forecasts for large downward adjustments of the crop. These forecasts are down to the potential impact of El Nino on crop production. As with the broader agricultural sector, rain is a key factor in sugar production.

Countries likely to experience notable reductions due to weather risks include India – the world’s second-largest sugar producer behind Brazil. Other Asian sugar producing giants seeing huge revisions are China, Thailand, and Pakistan.

While sugarcane production, which accounts for 80% of global sugar volumes, is expected to fall, it’s not the only concern. Also to impact prices are projections for a shortfall in beet crop across Europe, with beets accounting for about 20% of the world’s sugar.

Also contributing to the high sugar prices is the OPEC decision on oil output, with slashed production and expected increase in oil prices likely to impact producers.

The post Sugar prices hit 11-year high as weather impacts producers appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    Rep. Jennifer Wexton (D-Va.) announced on Tuesday that she has been diagnosed with Parkinson’s Disease. “If there’s one thing that Democrats and Republicans can...

    Latest News

    After Dianne Feinstein announced she’d contracted the shingles in early March, her staff said she planned to return to the Senate within a matter...


    A U.S. District Court judge has ruled that Elizabeth Holmes, founder and CEO of the disgraced blood-testing company Theranos, cannot remain free on bail...

    Latest News

    SEOUL, South Korea — When a group of American lawmakers arrived in South Korea for meetings with government and military officials, President Yoon Suk-yeol...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.