15:48 - 1.10.2026

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October 1, Fineko/abc.az. The El Niño phenomenon is hitting the world's largest sugar producers, exposing the acute vulnerability of this crop to climatic events.

Bloomberg writes that at the beginning of this year, the sugar market was faced with an oversupply, but El Niño is leading to a dramatic change in the situation, and many analysts now expect shortages this season. Crude sugar futures have increased more than by 25% since July, and today they are growing by 1.2%.

El Nino is intensifying rains in the southern cane growing regions and drought north of the equator, which is hitting key producers  Brazil, India and Thailand. Against this background, sugar prices have risen sharply, pushing global food prices to their highest in more than 3 years and signaling risks to other crops - rice, cocoa, coffee and palm oil.