Meanwhile, mills in Brazil’s Center-South are boosting production. Below-average rains are expected for the country’s cane areas this month, favoring the harvest, Hedgepoint Global Markets analyst Livea Coda said in a Thursday report. The expectation of good Brazilian supplies in the short term is helping to keep a key spread between October and March futures lower.
“Markets do not seem so tight during this third quarter, but they are expected to become tighter from the fourth quarter onwards,” she said.
Rising energy prices create demand for sugar as Brazil will turn towards more ethanol production. That’s just one example of how the uptrend in oil prices will have a knock-on inflationary impact on the wider global economy.Click HERE to subscribe to Fuller Treacy Money Back to top