Sugar prices are on the up
A sharp rise in the price of sugar has been blamed on falling production in Brazil. A lack of investment in the sugar industry there has led to older, lower-yielding sugar canes and the price rise is set to continue.
Over the last couple of months "two commodities stood out from the pack", says research group Capital Economics. Wheat has been a poor performer, down by a fifth since the start of June, as "prices were undermined by the ending of Russia's export ban". Yet wheat remains historically expensive and, with Russian supplies set to rise, further falls seem likely.
Supply is looking more supportive for sugar, which is up almost 30% in the last two months. The big story is Brazil, which is on course for its first decline in sugar production in a decade, says Agrimoney, a soft commodities news provider. That's partly due to a late start to the crushing season this year, "but also a hangover from two years of under-investment that have left the country with ageing cane". Its cane plantations now have an average age of four years, compared with an ideal age of under three years.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
The UK areas which saw biggest jump in asking prices in 2025 – is yours on the list?We look at the UK areas where asking prices rose the most last year.
-
‘Sandwich generation’ carers losing £6,000 a year to support elderly relativesMiddle-aged adults are often caught between caring for children or grandchildren and their elderly parents, leaving them taking time out of the workforce and facing a huge hit to wages while they are still trying to save for retirement. We look at the true cost of caring.
