Grapevine

Sugar’s biggest jump since 2008 is a fresh threat to food prices

Sugar prices are surging as fires and drought slam fields in top grower Brazil, threatening higher costs for sweets and desserts.

Raw sugar futures headed for their biggest weekly gain in 16 years, as traders digested the extent of crop damage from the blazes and a blistering heat wave in the nation.

Sao Paulo state — part of Brazil’s main Centre-South growing region — has faced a record number of fires this August due to a lack of moisture. That damaged cane roots, and may force producers to replant or face a smaller harvest in the upcoming season. It also followed a long dry spell since last October, which curbed yields.

While shifts in farmgate prices take time to feed through to the grocery store, sugar’s latest surge puts the sweetener on track for a sixth straight annual gain, keeping pressure on foodmakers.