Sugar prices in global markets witnessed a rise today, coinciding with oil prices exceeding $119 per barrel. This rise is due to continued supply disruptions as a result of current events in the Middle East, which has raised concerns about the possibility of Brazilian sugar factories shifting to producing larger quantities of ethanol at the expense of sugar production.
In trading details, by 09:33 GMT, raw sugar futures on the Intercontinental Exchange jumped by 2.1%, reaching 14.40 cents per pound, after it had recorded a rise of about 3% earlier.
As for white sugar futures, they rose by 2.4% to reach $424.30 per ton, according to what Reuters reported.
In this context, Alberto Pisciotto, director at the brokerage and consulting company “AP Commodities,” explained that the demand for ethanol is witnessing a noticeable increase thanks to the significant rise in crude oil prices, which have more than doubled since the beginning of this year.
