Meanwhile, India is cutting global supply as the government cabinet deferred a decision on subsidies to help mills export raw sugar.

“Brazil’s dryness initiated this move up, and India’s deferral of possible exports added a little fuel to the fire,” Boyd Cruel, a senior market analyst at Vision Financial Markets, said in the Bloomberg article. “Funds are unwinding some of their large net-short position.”

iPath Dow Jones-AIG Sugar Total Return Sub-Index ETN

For more information on sugar, visit our sugar category.

Max Chen contributed to this article.