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

Published 2021년 7월 9일

Tridge summary

The FAO Sugar Price Index experienced a slight increase of 0.9% in June, reaching a new high of 107.7 points, marking the third consecutive monthly rise. This upward trend is largely due to uncertainties about the impact of adverse weather conditions on Brazil's sugar crop, the world's largest exporter, as well as an uptick in crude oil prices and a strengthening of the Brazilian Real against the US dollar. However, the potential impact of these factors on global sugar prices is mitigated by strong production and export prospects in India. Additionally, the article mentions that the sugar beet cultivation area in Ukraine for the 2021 crop year will be 227.14 thousand hectares.

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Original content

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 ...

Source: Latifundist