The price of sugar sourced from Brazil has soared following a fire in October in one of the country’s largest ports, damaging around 180,000 tonnes of sugar.
According to Mintec, sugar prices were down until October, with a yearly average of 46.59 BRL (£12.66) per 50 kilogram, matching those of the first half of 2010.
However, prices were already beginning to rise because of weather concerns disrupting harvest. Mintec reported a 6.7 per cent rise from 1 October to 18 October, when the fire took place. Prices rose a further 6.9 per cent following the fire.
Mintec added: “The fire happened at one of the four port terminals, which has a total capacity to store 300,000 tonnes of sugar. It is estimated that it will take around six to 12 months to get back to working order, and therefore, will tighten supplies from Brazil in the near future.
“Approximately 53 million tonnes of sugar are exported globally per annum, and Brazil is the largest sugar exporter, with 42 per cent of world exports.”