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Rich Asplund

Sugar Prices Strengthen as Fires in Brazil Damage Sugar Crops

Brazil India ISM Thailand Drought London USDA

October NY world sugar #11 (SBV24) Tuesday closed up +0.56 (+2.94%). Oct London ICE white sugar #5 (SWV24) closed up +22.30 (+4.24%).

Sugar prices Tuesday extended Monday's sharp rally to 1-1/4 month highs. Massive fires in Brazil caused by drought and excessive heat have damaged sugar crops in Brazil's top sugar-producing state of Sao Paulo. Sugar cane industry group Orplana said that over the past weekend, as many as 2,000 fire outbreaks affected as much as 60,000 hectares of planted sugarcane in Sao Paulo. Green Pool Commodity Specialists said that as much as 5 MMT of sugar cane may have been lost due to the fires.

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