Spelling relief for Ukraine, Europe’s largest sugar producer, global sugar prices surged 12% in the first six weeks of this year,

Spelling relief for Ukraine, Europe’s largest sugar producer, global sugar prices surged 12% in the first six weeks of this year, reports Bloomberg. Behind the rise, drought cut crops in Thailand, frosts wrecked crops in the US, and Brazil channeled more of its cane crop into ethanol. Facing weak prices, Ukraine’s sugar refiners cut their production last fall by 19%, to 1.5 million tons. Then last week, Indonesia, the world’s largest sugar importer, announced plans to increase imports 11-fold to build a 1.3 million ton stockpile. Commodities trader ED&F Man Holdings Ltd. forecasts that last year’s world surplus will switch to a 10% deficit this year.