Sugar price rises further due to possible supply deficit on global sugar market

The raw sugar price climbed by 3% yesterday and closed trading at 14.60 US cents per pound. On the one hand, prices are finding support from ongoing fears about a powerful El Niño effect and a resulting supply deficit on the global sugar market. 

On the other hand, China imported considerably more sugar in the first nine months of this year than it did in the same period last year. It remains to be seen whether this trend will be continued in the coming year, says Commerzbank. 

Early next week, the Brazilian Sugarcane Industry Association (UNICA) will be publishing sugar cane processing data for the first half of October. This could give an initial indication of the impact that El Niño is really having. Independent agricultural consultant firm Agrilion estimates a sugar cane processing figure of 37-38 million tons.