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The World Is About to Have More Sugar Than It Needs. So Why Have Prices Surged?

  • Prices recently hit six-year high, risking more food inflation
  • Supply remains tight before big Brazil crop arrives in April
Sacks of refined sugar at a store in New Delhi, India.

Sacks of refined sugar at a store in New Delhi, India.

Photographer: T. Narayan/Bloomberg
By
Bloomberg News
Updated on

The world should end this season with its first sugar surplus in four years, but you wouldn’t know it from how prices have surged.

Futures hit a six-year high last week, threatening more inflationary pain by increasing the cost of making baked goods, candy and soft drinks. While top exporter Brazil is set to collect a much bigger crop, those supplies won’t arrive until harvesting starts around April — and right now the market is tightening.