Vending

Brazil frost drives sugar prices to 4-year highs

Image provided by iStock.

September 3, 2021

Sugar prices jumped to four-year highs after a Brazil frost diminished the cane crop in the world's largest producer, causing hedge funds to drive the market's momentum, according to report in The Wall Street Journal.

Raw sugar futures jumped 10% in the past month, trading at about 20 cents a pound in New York, matching 2017 highs and rising over more than 60% in the last year.

Frosts struck the Center-South region in June and July, damaging cane and diminishing its sugar.

Traders estimate the Center-South region will deliver between 29 and 33 million metric tons, 38.5 million less than last year.