Sugar futures on the Intercontinental Exchange staged their biggest daily gain in nearly 23 years after forecasts suggested weather-disrupted supply may fall short of demand.
The inter-government International Sugar Organization said on Tuesday that the market will record a deficit of 5 million metric tons of sugar in the current year due to adverse weather.
This year's supply shortfall will be the first deficit in five years as harvests are hit by the El Nino weather phenomenon and heavy rain in Brazil, the world's largest producer.
The most actively-traded May sugar futures on the Intercontinental Exchange in the U.S. soared 8.9 percent to settle at 13.90 cents a pound, the largest one-day gain since March 1993, according to Bloomberg's calculations. In London, white sugar for May delivery jumped 6.1 percent to $395.90 a ton on ICE Futures Europe.