Sugar futures fall to 3-year low

On 22 January, US raw sugar futures fell to their lowest level since summer 2021. This was due to expectations that India will resume exports in the region of 1 million tonnes of sugar, and due to a good harvest in Brazil. Quotes for March sugar futures on the ICE exchange fell 2.5 per cent to 17.77 cents a pound. In Brazil, which is the world's largest sugar producer, favourable weather conditions are boosting crop forecasts. Also due to falling ethanol prices, farmers have started processing more sugarcane into sugar instead of biofuel.