Raw sugar closed significantly higher on the New York stock exchange on Wednesday, September 20. The October contract stood above the psychological barrier of 14 cents per pound.
March 2018 delivery also rose 2.3% to 14.70 cents per pound. The reason for the increase is the considerable damage to cane sugar in Brazil. This is due to the drought. The main growing area, Central-South, is in urgent need of water. The losses are great.
Corrections due to weather conditions
In addition, there is also damage to some 300.000 hectares of sugar cane in Cuba. There, 13 refineries were seriously damaged and storage facilities were flooded.
The recent hurricanes and weather conditions this year lead to a correction of previously released forecasts. This also means a shift in Brazil's ethanol production, where refineries are putting more cane sugar in biofuel than in sugar.
Also a price increase in white sugar. The December contract to Liffe in London gained 1,64% on Wednesday and closed at $365 per tonne.