The price of sugar has risen this week, driven by concerns over the 2026-2027 harvest. A major factor behind this is the development of El Niño, a recurring weather pattern characterized by unusually warm ocean temperatures in the central and eastern Pacific. This phenomenon is expected to be the strongest on record, intensifying the effects of climate change. Thu Lan Nguyen from Commerzbank notes that El Niño is likely to impact the three main sugar-producing countries: Brazil, India, and Thailand, potentially reducing their harvest yields. She also highlights that European countries, particularly France, could face a hot and dry summer, leading to the lowest sugar production since 1980. Nguyen adds that if these unfavorable weather conditions continue, sugar prices are expected to rise further. Another contributing factor is the high cost of fuels, which is prompting sugar mills to focus more on producing ethanol from sugar cane. Ethanol is commonly used as a fuel additive, and this shift in production is indirectly increasing demand for sugar, pushing prices higher. This trend has been exacerbated by the ongoing conflict in the Middle East, which has affected global fuel prices and supply chains. In New York, the price of raw sugar for March delivery reached 19.29 cents per pound on Friday, up from 18.50 cents seven days earlier. Meanwhile, in London, the price of white sugar for December delivery was reported at 515.90 dollars per ton on Friday, compared to 502.60 dollars the previous Friday. These increases reflect the growing concerns about supply and the impact of global weather patterns on agricultural production. The sugar market is closely watching the evolution of El Niño and its potential impact on global harvests. Analysts like Nguyen emphasize the importance of monitoring both weather conditions and geopolitical developments, as they can significantly influence supply chains and commodity prices. With the current trends, it remains uncertain whether sugar prices will stabilize or continue to climb in the coming months.