Sugar spike: this isn’t the first time weak data and ad hoc policies are showing up in food prices
Take the case of wheat, which was under an export ban since 2022. It was lifted earlier this year due to record production and stocks. While high stocks give the government headroom, there is also the possibility of the El Niño phenomenon strengthening and hurting the next wheat crop. To be sure, it is too early to predict the production for next year. But one would have expected caution, given expectations of extreme heat and low water reservoir levels.
