Agricultural commodities see price shifts in wheat and sugar

Agricultural commodity markets are seeing significant shifts. In Argentina, wheat prices have risen by more than 11% in dollars over the last month. This recovery is driven by increased buyer demand and restricted supply, as producers have occasionally opted for other crops like soy and corn to maintain liquidity. The Rosario reference price rose from approximately US$ 197 to US$ 220 per ton during this period, supported by international uncertainty regarding Black Sea supply due to the Russia-Ukraine conflict.

Globally, sugar prices have reached their highest level in nearly a year. This trend is largely driven by production uncertainty in Brazil, the world's largest exporter of refined sugar. Brazil's National Supply Company (Conab) has reduced its sugarcane harvest estimate to 705.2 million tons, down from previous projections. Additionally, Brazilian sugar production fell 15% year-on-year in June due to heavy rains linked to El Niño. These rising costs are expected to impact the prices of processed goods, including beverages, chocolates, and confectionery, particularly in markets like Chile.