PLEASE REFER TO THE HEDGE AND TRADE STRATEGY PAGE FOR UPDATES!! The capital of Brazil is currently covered in a smoky fog originating from forest fires. Forest fires in Brazil are fairly common this time of year as the dry season drags on. Many fires are started from natural causes but some are from illegal deforestation. They historically take place further north where there is more forest cover. What is unusual this year is that there are a higher number of fires in the South, specifically in the state of Sao Paulo in the heart of the sugarcane production area. Dozens of cities have been put on alert and some roads have been shut down. One sugarcane production company reported 50,000 acres were burnt. Another sugar mill was shut down for a couple of days as fire encroached upon their facility, but they have already returned to work. This has sent sugar prices rallying 150 points since last Friday. Analysts agree that while there will be some damage from fire, the yield loss from dry weather is much greater. Brazil is the largest sugar producer and exporter by far, supplying 70% of the global sugar market. Oddly enough, they used…
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