Hot Commodities: Sugar spikes to 15-month high in world markets

Global Sugar futures are soaring on worries that world market is headed for a deficit after several seasons of sugar surplus as Indian output trends. Following the El Nino weather pattern, India and, Thailand is likely to see a reduction in sugar production. Last week, Indian government announced duty-free imports of up to 1 million tonnes of raw sugar under a tariff-rate quota (TRQ) until October 31, 2026. Importers were required to convert the imported raw sugar into white or refined sugar and sell it in the domestic market by October 31. Spot Sugar prices have surged around 15% over last one month and peak festive buying is yet to start. This pushed up the global prices and NY Raw Sugar broke above 17 cents per pound mark to approach highest level in around 15-months. Prices are up around 20% in last one month.

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