Sugar futures rose to the highest in 4 years-level
Adverse weather conditions in Brazil, which is considered the world's largest manufacturer and importer of sugar, is a concern about the increasing shortage of supplies of these products. In consequence, sugar futures rose to the largest in the last 4 years of level.
On the new York stock exchange, March sugar futures rose 6.2% to 22.47 cents/lb. The global market is in deficit. Last time a similar price was observed in 2012, when 31 Jul quotes made up 22.86 cents.
At the end of August of the previous year the world's crop of sugar cane declined by 19%. The production forecast for September shows an even greater reduction in productivity, which will lead to further reductions in sugar production.
Over the southern regions of India, which is the second largest world sugar producer, continues to be drought. Typhoon Meranti, which recently took over China, flooded a lot of areas with sugar cane.
a Brazilian judge A. Manoel passos, analyzing graduation rates for the following year, came to the conclusion that because of the shortage of sugar balance can lead to higher prices.
the Growth of the world prices will increase the cost of production of some companies, especially those that produce sweets, for example, Nestle SA. In connection with a commodity index Bloomberg in 2016 increased the prices of 22 raw materials, and in 2015, the price increased by 5%.
Since last Friday, there is a tendency of growth of the world prices. London December futures for white sugar rose by 4.9% to 583,4 $/ton. Such price level was observed on 10 October 2012, when the price was $ 591,9 $/ton.