Sugar prices surge to two-month highs

Crude sugar prices rallied on Wednesday to near two-month highs in global markets amid uncertainty about Indian supplies due to severe drought conditions. 

Reuters reported that the drought led to the closure of several Indian sugar factories, which could lead to only 700 thousand tons of exports this season, far below the usual quota of a million tons. 

Additionally, weather agencies expect drought in northern and eastern Brazil to negatively impact sugar products this season as well.

On trading, crude sugar futures due in March rose 1.12% to 20.7 cents a pound as of 16:45 GMT, approaching a record high at 20.72 cents.

White sugar futures due in March also rose 0.9% to $546.3 a ton.