On January 22nd, Gro Drought Index(GDI) issued a document saying that Brazil's largest sugar producing area is suffering from a record drought for two consecutive years, which may lead to the reduction of sugar production in Brazil in the upcoming 2022 / 23 pressing season, thus prolonging the high operation trend of international sugar prices.
According to GDI drought index, since July 2021, sugar cane growing areas in São Paulo, Brazil, which accounted for more than half of Brazil's total sugar cane output, experienced "abnormal drought", and the total rainfall was 19% lower than the 10-year average. This is the fourth consecutive year of insufficient rainfall in this area, which has seriously affected the new and old sugarcane areas.
Brazil is the world's largest sugar producer and exporter. As Brazil's sugarcane is suffering from another bad year of drought, the global sugar supply will be further tightened, and the international sugar price will run at a high level.