Brazil weather extremes underpin run-up in world sugar prices

The FAO Sugar Price Index averaged 121.2 points in September, up 0.6 points (0.5%) from August and 42.2 points (53.5%) above the level registered in the corresponding month last year.

Reportedly, concerns over a reduced output in the world's largest sugar exporter, Brazil, due to prolonged dry weather conditions and frosts, continued to underpin the increase in world sugar prices.

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Higher ethanol prices encouraged greater use of sugarcane for ethanol production in Brazil, analysts add.

However, the upward pressure on prices was limited by a slowdown in global import demand for sugar and good production prospects in key exporters, such as India and Thailand.

READ MORE: Ukrainian Sugar Market Overview 2020/21

Beet sugar production in Ukraine 2021/22 progressed to 255.6 thou. t as of 6 October. 26 sugar plants have started the production season.