Internationally Sugar Hover At 2-Month High

Pakistan Sugar export

SUGAR: futures on ICE rose to above 18.5 cents per pound in the second week of October, hovering around the highest level in over two months and recovering 7% from a 14-month low of 17.4 hit on October 3rd on higher crude oil prices after OPEC+ decided to cut output.

Higher fuel costs are set to drive producers to use sugarcane to produce biofuels instead of crushing sugar, decreasing the supply of sweeteners.

Prices also remained highly volatile as investors await the run-down of presidential elections in top producer and exporter Brazil.

If elected, right-wing incumbent Jair Bolsonaro is set to privatize state-owned oil giant and price regulator Petrobras, increasing uncertainty over fuel prices.