Food and Agriculture Organization of the United Nations Reports 9.8% MoM Surge in Sep-23 Sugar Prices Amid Global Supply Constraints and El Niño

The Food and Agriculture Organization of the United Nations (FAO) reported a 9.8% month-on-month (MoM) increase in the sugar price index due to concerns about global supply tightening during the 2023/24 campaign. Initial estimates suggest a drop in sugar production in Thailand and India due to El Niño, a meteorological phenomenon causing global temperatures to rise. The FAO also noted a rise in oil prices, encouraging producers to convert sugar into ethanol, reducing the market quantity, and raising prices. However, the increase was limited by favorable harvest conditions in Brazil and the weakening Brazilian real against the United States (US) dollar.