Recently, the probability of a strong El Niño incident continues to increase. Extreme weather such as torrential rain and drought is raging in many parts of the world. The sugar cane farming industry in many sugar producing and exporting countries has been impacted. As market concerns about declining production in major sugar cane producing regions have heated up, global sugar futures prices have also recently risen to a high point during the year. According to a report released by the US National Oceanic and Atmospheric Administration, the probability of a strong El Niño event occurring from October to December this year is 81%, and its intensity may be among the strongest El Niño events since 1950. According to the latest report released by Rabobank, the El Niño incident will also cause rainfall in India and Southeast Asia to fall below year-round levels, increasing the risk of a decline in sugar production, which in turn will lead to a tightening of global supply expectations. India has banned sugar exports until the end of September. A sufficiently large impact of production cuts could force India to switch to imports. In the last month, the main contract prices for New York raw sugar futures and London white sugar futures have increased by a cumulative total of about 12% and 8.8%, respectively. In the same period, although domestic sugar futures prices followed the rise in the external market, the increase was limited.

Recently, the probability of a strong El Niño incident continues to increase. Extreme weather such as torrential rain and drought is raging in many parts of the world. The sugar cane farming industry in many sugar producing and exporting countries has been impacted. As market concerns about declining production in major sugar cane producing regions have heated up, global sugar futures prices have also recently risen to a high point during the year. According to a report released by the US National Oceanic and Atmospheric Administration, the probability of a strong El Niño event occurring from October to December this year is 81%, and its intensity may be among the strongest El Niño events since 1950. According to the latest report released by Rabobank, the El Niño incident will also cause rainfall in India and Southeast Asia to fall below year-round levels, increasing the risk of a decline in sugar production, which in turn will lead to a tightening of global supply expectations. India has banned sugar exports until the end of September. A sufficiently large impact of production cuts could force India to switch to imports. In the last month, the main contract prices for New York raw sugar futures and London white sugar futures have increased by a cumulative total of about 12% and 8.8%, respectively. In the same period, although domestic sugar futures prices followed the rise in the external market, the increase was limited.