A period of dry weather in Brazil has led to sugar prices soaring to a 30 year high as the Brazilian harvest ends early resulting in a likely supply shortage. Unlike earlier expectations for prices falls sugar prices are now possibly set to rise into the new year.
Crop shortages are likely in Brazil, Russia and parts of Europe with inventories standing at historical lows. Sugar prices are at their highest since 1980.
India is expected to announce shortly how much sugar it will allow traders to export. Most likely this will be between 1-2 million tonnes. Any less and we may see another steep rise in prices.