World sugar prices break four-year record

World sugar prices broke a four-year record amid rising demand for ALCOHOL. it is reported by BLOOMBERG.

Prices are peaking amid pressure on the market from the global energy crisis. Therefore, the world's leading producers began to process more sugarcane into ethanol, which can be a biofuel for cars in the form of a mixture with gasoline or diesel fuel.

According to agency estimates, futures for white sugar on the ICE exchange rose 1.2 percent, and since the beginning of the year, the price has increased by 22 percent. Moreover, a sharp increase began in August, when it became clear that frosts in Brazil, which is the largest exporter, risk blowing up the production and supply of raw materials.

“The domestic ethanol market and the international sugar market are vying for Brazilian cane,” said Andy Duff, HEAD of US food and agribusiness research at Rabobank.

The second-largest exporter, India, plans to have ethanol make up 20 percent of vehicle fuel blends by 2025. Such a strategy, writes Bloomberg, risks leading to a drop in the production of refined sugar next year.

Both India and Brazil will be forced to produce more ethanol from sugar cane in the next 12 months due to rising fuel prices, Group Sopex analyst John Stansfield said. According to him, this will contribute to further growth in sugar prices.

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