Massive Fires to Hurt Sugar Output in Top Supplier Brazil
- Impact may extend into next year as cane has been sprouting
- Raw sugar prices jump 4.2% on Monday, most intraday in a month
An area affected by bushfires near the SP-215 highway in Sao Carlos, Brazil on Aug. 23.
Photographer: Lourival Izaque/AFP/Getty ImagesThis article is for subscribers only.
An unprecedented outbreak of fires that hit sugar-cane fields in the world’s top exporter Brazil over the weekend is set to impact global supply of sweetener and elevate prices.
The consequences could be bigger than those from a major frost that damaged sugar cane in Brazil in 2021, according to top trader Alvean. “The scope of the issues now is much bigger,” Mauro Virgino, trading intelligence lead at the company, said in an interview. “The fires of 2024 are like the frosts of 2021, but on steroids.”