World sugar prices dropped 15% as crude oil collapses — FAO

The FAO Sugar Price Index averaged 144.points in April, down 24.7 points (14.6%) from March, marking the second consecutive monthly decrease.

"This latest drop was mostly on the back of a collapse in international crude oil prices," the report reads.

According to the FAO report, falling energy prices mean that sugar mills divert more sugarcane for the production of sugar instead of ethanol, a substitute for gasoline, hence expanding sugar export availabilities.

In addition, the organization says, a contraction in sugar demand arising from the confinement measures imposed in a number of countries to contain the spread of Covid-19 spawned additional downward pressure on world sugar prices.

As of May 7, sugar beet planting in Ukraine reached 206.68 thou. ha, 99% of 209 thou. ha of planned areas.