World prices for sugar, reached in early January, three-year low, went up sharply.Growth in purchases associated with drought in Brazil – one of the largest regions in sugarcane production, experts explained Union of Sugar Producers Federation (Soyuzrossahar) writes forbes.ua .
Sugar prices show a downward trend for several years. Over the past two years the cost of sugar futures on the Chicago Mercantile Exchange fell twice. In late January, prices have reached a low of 14.8 cents per pound ($ 326 per ton), and then turned around and for four trading sessions jumped nearly 9% – to 16.06 cents.
The growth was due to fears that dry weather in Brazil will continue for a long time and hurt cane matures, according to Soyuzrossahar.
“Bury the crop early, south Brazil rains did promise, although more northern regions seem to moisture until they see” – said the union. Key areas sugarcane are mainly located in the south.
This January in Brazil was the hot and dry for the last 20 years. In this forecast, the drought will continue in February. Despite the fact that the cane is less sensitive to drought compared with coffee trees, doubts about his crop amplified.