Global sugar prices increased by 2.6% in October 2024 due to weather uncertainty in Brazil, inching up the monthly Sugar Price Index. 

According to the Food and Agriculture Organization (FAO), the monthly index for the sweetener increased by 3.3 points to 129.6 points.

The value appreciated in tandem with that of cereals (0.8% up), vegetable oils (7.3% up) and dairy (1.9% up). This combination propelled the FAO Food Price Index (FFPI) for October to 127.4 points. Of the five FFPI categories, only meat ameliorated in pricing (0.3% down).

With regard to sugar, the upward movement marked a continuous climb in two months in both September and October.

All in all, the price of sugar was still cheaper in October 2024 than October 2023’s whose index had averaged 159.2 points. 

The monthly rise of the index in 2024 owes to the changing weather conditions in Brazil, the world’s top sugar producer. 

FAO linked the uncertainty over the prolonged drought in the country’s central-southern sugarcane belt to uptick sugar prices.

Additionally, a sharp improvement in crude oil prices in October at $78/bbl stimulated the production of sugarcane-derived ethanol. This in turn stressed Brazil’s cane supplies for sugar and hence the month’s price strength.

The index could have been higher were it not for a weakening Brazilian real, which partially promoted low pricing. A weak real is usually beneficial to traders who export more at such times as it converts to extra local cash. At such times, export supplies rise in high demand destinations while prices in their turn weaken.

Besides, rain was back in the cane belt of the country in late October, a bearish factor on prices.

If the rain continues, November 2024 could have a relatively low index worlds apart from the November 2023 index at 161.4 points. The commodity’s second highest index in the same timeline was in February 2024 at 140.8 points. 

In short, the consecutive rise of the Sugar Price Index could cool in November with improving weather in Brazil. To learn more on this market indicator, below are historical bits from as early as 2000.

Sugar Price Index Statistics

The Sugar Price Index tracks the monthly average pricing in world sugar. It reached its highest monthly turn in the past year in November 2023 at 161.4 points. Regarding the annual average trend, 2023 had a higher index at 145 points vis-á-vis 2024’s preliminary average of 135 points. Although this indicates rising prices of the sweetener in recent years, this rise is by no means the highest since 2000.

How has the annual sugar price index performed since 2000? 

In the two decades between 2000 and 2020, the sugar index has shown wide variances. Its peak was in 2011 at 160.9 points while its lowest reach was in 2002 at 42.6 points.

How has the actual global sugar price performed historically? 

In the corresponding 2000-2024 period of the above index, the actual price of sugar has shown similar varying trends. The price hit a two-decade high in January 2011 at $0.33 per pound and a low of $0.05 a pound in May 2002. This pricing comparison compares well with the index, which was similarly low and high in the same timelines.