The U.S. dollar-Brazilian real exchange rate is a key driver of changes in world raw sugar prices

The U.S. dollar-Brazilian real exchange rate is a key driver of changes in world raw sugar prices

Brazil is the largest global producer and exporter of sugar and, over the long term, world sugar prices are closely linked to production costs in Brazil, as well as movements in the exchange rate between the U.S. dollar and the Brazilian real. Prior to 2003/4, the depreciation of the real against the dollar contributed to declines in Brazilian production costs when denominated in dollars.

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