The more sugar has about coffee all the more … he is bitter. Cause; Limit values ​​of the two main products which for many are a daily morning treat: coffee and sugar. In fact, prices for the latter seem to leave a bitter aftertaste. international market, affecting a range of food items on store shelves. At the same time, SOS is also broadcast around the world. rice marketas the reduction in production led to price him upstairs.

Contracts for raw sugar rose to 24 cents a pound, the highest level in 11 years, on the back of rising demand as well as adverse weather conditions for the crop. “Fundamental factors in the sugar market suggest that prices will remain high in the short to medium term,” said S&P analyst Girish Chimwal, citing risks mainly related to weather conditions for the world’s leading producers of this commodity. Prices in the international market will apply to snacks, soft drinks and other sugary foods, John Stansfield, chief commodity analyst at DNEXT, told CNBC.

He added that processed food prices are also on the rise globally. “A chocolate bar contains milk, cocoa powder, etc. The prices of these products are also rising, and labor and energy costs are also rising.” In recent weeks, several countries, including India, Thailand, China and Pakistan, have revised their estimates of production levels.

The world level of production is falling, dominoes are rising in manufactured goods.

It should be noted that India is the second largest sugar producer in the world after Brazil. Significantly, in early April, the Sugar Producers Association of India lowered production estimates by 3% during the harvest period, which runs from October 2022 to September 2023.

Mr. Chimwal estimates that while China could potentially use its reserves to ease pressure on global markets, there are many factors that could push prices higher. Meanwhile, according to CNBC’s Matthew Biggin, commodities analyst at Fitch Solutions, Brazil’s south-central sugar cane crop, which accounts for 90% of the country’s total production, occurs between April and December, so yields will be key. for measuring. However, he adds that prices are now so high that even if they stabilize, they will still remain at historically high levels. Another factor that raised prices is his recent decision. OPEC reduce oil production by 1.16 million barrels per day.

In addition to prohibitive sugar prices, global rice production has begun to decline, leading to price spikes that have affected more than 3.5 billion people worldwide. The hit is especially hard for people in Asia and the Pacific, where 90% of the world’s rice is consumed.

According to Fitch Solutions, the global rice market will face its biggest deficit in over two decades this year. This shortage will hit countries that import large amounts of rice. “Globally, the most visible impact of the global rice shortage has been and continues to be its highest price in a decade,” said Charles Hart, commodities analyst at Fitch Solutions, according to CNBC. Meanwhile, rice prices are expected to remain at their current high levels until 2024, according to a report by Fitch Solutions. As for coffee, a recent Bloomberg report, citing Rabobank International estimates, notes that despite lower futures prices, consumers won’t feel it as production costs remain high.

For example, at the end of January, futures for Arabica coffee fell significantly from the ten-year highs reached the previous year. However, high labor, energy and packaging costs are having a significant impact on coffee companies’ margins, which will keep prices high.