4-India's Severe Droughts Trigger Soaring Sugar And Cotton Prices

1. India's Severe Droughts Trigger Soaring Sugar And Cotton P India's Severe Droughts Trigger Soaring Sugar And Cotton Prices rices Unusually dry weather in India is jeopardizing global supplies of agricultural commodities such as sugar and cotton, raising the prospect of prolonged food price inflation. Rise In Sugar Pricing Rise In Sugar Pricing Last Wednesday, benchmark raw-sugar futures in New York surged to a point where they were trading at 28 cents per pound, about a 12-year high. Monday morning trading was at the 26-cent mark. The spike occurs as droughts brought on by the El Nino weather pattern hit India, which accounts for 20% of global sugar production. India's Meteorological Department reports that August was the driest on record for the country this year. Rainfall during India's monsoon season, which runs from June to September, reached a five-year low. Lower-than-average rainfall has been reported in sugar cane fields in Maharashtra and Karnataka, which produce more than half of India's sugar, according to a source at a sugar company. The source estimated that output would decrease by 3% in 2023–2024. The Indian government announced on 18th October that it would prolong sugar export restrictions indefinitely. The export restrictions were supposed to expire that month but have been extended due to poor harvests and rising prices. Concerns about supply are increased by the dry weather that El Nino is bringing to Thailand and other major sugar-producing countries in Asia. According to a source at a different sugar company, buyers are aggressively competing for sugar coming out of Brazil, the world's largest producer, given the uncertainties surrounding the northern hemisphere's harvests this year.

2. Rise In Cotton Pricing Rise In Cotton Pricing In India, the dearth of rain is also raising the cost of other agricultural cpmmodities exporter. On September 29, cotton futures shot up to a roughly 10-month high of 90.75 cents per pound. On Monday, they were trading at the 83 cents level. Reduced rainfall in the Deccan Plateau is severely affecting yields. In September, the U.S. Department of Agriculture revised down its estimates by 2% and 9%, respectively, for India's cotton yields and exports for the year ending in July 2024. Speculators have exacerbated the price increase further. The U.S. Commodity Futures Trading Commission reports that as of October 24, noncommercial traders—which include speculators—held 22,680 net long contracts for cotton, compared with 1,678 net short contracts at the end of June. Sugar net long contracts also went up during that time, from 220,174 to 224,695. Rice Exports From India Rice Exports From India India banned the export of white rice in July, except for basmati, in order to prioritize domestic consumption due to the exceptionally dry weather. The largest rice exporter in the world's action increased concerns about a potential shortage of the grain, which caused the benchmark price of Thai white 5% broken rice to reach a roughly 15-year high in August. The economy as a whole might be affected by rising agricultural product prices. In September, the cost of cakes and candies increased 11.6% in Japan compared to a 3.4% increase in the cost of clothes and shoes. Both rose faster than the Consumer Price Index, which increased by 3% overall. According to Tsutomu Kosuge of Marketedge, a Tokyo-based company, “weather-based supply concerns for agricultural products are unlikely to be resolved at this point.” “Prices will continue their upward trend.” If you are sugar importer/ cotton importer wishing to buy sugar in bulk/ buy cotton in bulk or a sugar exporter/ cotton exporter willing to export bulk sugar/ export bulk cotton, then Tradologie.com is the right platform for you. Tradologie.com is a SaaS platform that facilitates bulk agro-trade across the globe. Through tradologie.com’s interface, buyers can avail the best qualities of agro-commodities at negotiable rates. The transaction oriented platform has 600,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 150 countries. To register as a buyer, click here. To register as a seller, click here. To stay updated with the latest happenings in the agro-trade industry, follow Tradologie.com across all social media channels.