Global sugar prices resumed growth following the oil market

October sugar futures No. 11 on the New York Stock Exchange during the week almost regained the fall of the last month and rose by 3.7% to 4 430/ton (which is 53% higher than last year's level) against the background of rising oil prices and, as a result, ethanol.

December white sugar futures No. 5 on the London Stock Exchange have risen 3% to 5 513.4/ton since the beginning of the week, which is 39% higher than last year's level.

Global prices for cane and refined (white) sugar continue to rise as a result of the drought in Brazil, which reduces forecasts for sugar cane production.

Ethanol prices in Brazil rose to a record 3.2635 reais/L last week, so local cane processors are increasing ethanol production and reducing sugar production.

The expected increase in cane sugar production in India and Thailand has not yet offset the decline in production in Brazil, so the global sugar shortage in the current season may reach 3.8 million tons.

Thai Sugar Millers Corp, Thailand, the world's second-largest sugar exporter, is projected to increase sugar production by 44% to 11 million tons in 2021/22 MG due to favorable precipitation and expansion of sowing areas.

In Ukraine, sugar production will also grow this season, which will increase exports, since over the past 8 months the country has almost not exported, but rather imported sugar. According to the State Customs Service, in the period January – August 2021, sugar exports from Ukraine amounted to 2,225 thousand tons (81.8 thousand tons in January – August 2020), and in general in 2020/21 MG reached only 71 thousand tons, which is 31% lower than the previous season's exports of 103.7 thousand tons..