Some companies believe that Brazilian sugar in New York may reach 25 cents a pound , thanks to the reduction of global surplus due to lower availability of sugar for the export market due to strong demand for ethanol in the domestic market and the possible extent of El - Niño . This conviction will ensure that you retain the Brazilian traders from selling sugar at these low prices .
Given the cost of sugar production , if we fix the dollar to 2.3000 real, Sugar 11 should be between 18 and 19 cents per pound for the season 2014/2015 . If you get even a weak El Niño , which causes delays or interruptions just milling for the rains that accompany this phenomenon, the increase could be much higher and certainly exceed $ 25.
Imagining that the plants are working at the limit of their ability to grind, daily interruption results in a decline of about 2.5 million tons of cane that will not be on the market.
Imagine what could happen with a medium - strong El Nino intensity.

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