Drought killing next year’s sugar crop
The El Nino weather phenomenon has played havoc with crops across Southeast Asia and beyond. Thailand, the world’s second-largest sugar exporter, will ship 20% less of the sweetener to international markets this year than last, and farmers fear the damage already inflicted on young cane plants could make next year worse. A drop in exports from Thailand and India has contributed to forecasts for a widening global supply deficit this year, fuelling a rally in international prices to a 17-month peak last week and helping sugar outperform a commodity complex struggling with the slump in global oil prices.
