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Dryness 'To Overtake Wet As Biggest Sugar Threat'

26 July 2010

BRAZIL – Parched fields could soon outweigh the dangers posed by excessive rain as the most serious threat to global sugar supplies, Rabobank has warned, despite recent forecasts of wet weather helping to boost prices to a four-month high.

According to, traders had blamed forecasts of more rain at Brazil's seaboard for a hike in values of raw sugar, to $0.187 (£0.121) a pound in New York – their highest amount since the end of March.

Further down the line, however, it is dry weather that may begin to damage supply, by accelerating the seasonal decline in Brazilian harvests, analyst Andy Duff told the news provider.

He said: "Although July has brought several days of very wet weather, there remains some concern that dry conditions this year may impact cane yields both towards the end of this season and next season."

Earlier this month, it was announced that sugar cane-based diesel fuel was set to be sold across Brazil from 2011, according to US biotech firm Amyris.

TheCropSite News Desk

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