Sugar Price Index at new multi-year high in June: FAO

The FAO Sugar Price Index averaged 107.7 points in June, up slightly by 0.9 points (0.9%) from May.

This is the third consecutive monthly increase, a new multi-year high.

The Food and Agriculture Organization (FAO)

"Uncertainties over the impact of unfavourable weather conditions on crop yields in Brazil, the world's largest sugar exporter, exerted upward pressure on prices"

The recent increase in crude oil prices and an appreciation of the Brazilian Real against the US dollar in June lent additional support to world sugar quotations. Higher energy prices tend to prompt producers in Brazil to divert more sugarcane crushing to ethanol production, while the stronger currency tends to negatively affect exports.

On the other hand, good production and export prospects in India had partly offset the overall upward pressure on international sugar prices and prevented larger monthly increases.

Sugar beet area in Ukraine in 2021 crop year totals 227.14 thou. ha.

Related: Ukrainian Sugar Market Overview 2020/21