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The price of raw sugar has surged by about 25% since the beginning of the year, exceeding $450 per ton due to reduced global supply. Factors include the El Niño phenomenon, producers shifting to ethanol production, and export restrictions. The International Sugar Organization predicts a global deficit of 200,000 tons for the 2026/2027 season, following a surplus of 1.1 million tons previously. Major producers like Brazil, India, and Thailand are facing significant production declines. Brazil's heavy rains have disrupted sugarcane harvesting, while Thailand's output is expected to drop by 17%. India's suspension of sugar exports further tightens the market, increasing reliance on Brazil, which accounts for 55% of global sugar exports. The global supply remains vulnerable to production issues, potentially keeping prices high.

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