US Raw Sugar rose to a 6-year high Monday
Raw sugar futures in the US surged above $22.4 per pound in early April, the most in over six years, supported by expectations of higher biofuel demand and lower output from key producers.
Crude oil prices soared after OPEC+ announced a surprise output cut, encouraging sugarcane producers to allocate crops to more profitable biofuel blending instead of sugar crushing and limiting the sweetener supply as a result. To add, Brazil’s new federal government ended its tax exemption program for gasoline, raising demand for lower-taxed sugarcane ethanol and adding to the momentum for biofuel blending. Elsewhere, crop damage and unfavorable weather in Thailand and India pressured output projections from other major producers