El Nio causes a surge in sugar futures prices.

Recently, the probability of a strong El Nio event has continued to increase, causing extreme weather such as heavy rainfall and droughts to ravage various parts of the world. The sugarcane planting industry in several sugar-producing and exporting countries has been impacted. As concerns grow over a potential decline in yields from major sugarcane production areas, global sugar futures prices have also risen to a yearly high. The National Oceanic and Atmospheric Administration reports that the probability of a strong El Nio event occurring from October to December this year is 81%, with its intensity potentially ranking among the strongest El Nio events since 1950. A recent report from Rabobank indicates that the El Nio event could lead to rainfall in India and Southeast Asia being below normal levels, exacerbating the downward risk to sugar production and tightening global supply expectations. India has already banned sugar exports until the end of September. A sufficiently large reduction in production could force India to turn to imports. In the past month, the main contracts for raw sugar futures in New York and white sugar futures in London have increased by approximately 12% and 8.8%, respectively. During the same period, domestic white sugar futures prices, although following the rise in foreign markets, have seen limited increases.