CS Brazil is preparing for its worst cane harvest in nine years, after enduring its most intense frost in the last decade.
We think this is a key reason raw sugar prices are at their highest level since 2016.
The story is very visible and easy to understand, even to a casual market observer, meaning it can more easily fuel bullish sentiment.
With this, sugar production from the world’s dominant raw sugar supplier could fall by 1.6m tonnes to 32.5m tonnes. Its raw sugar export availability could therefore reduce by 1m tonnes, meaning CS Brazil’s raw sugar exports could be 5m tonnes lower than last season.
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