00:00The economic fallout from the war in Iran is spreading far beyond the petrol pump
00:05and it's now hitting the global pantry. As the Strait of Hormuz remains all but closed,
00:11we are seeing a spike in the price of staples like sugar and coffee.
00:16White sugar futures hit their highest levels in five months this week as concerns grow over
00:23refinery output in the Middle East. There are reports some vessels carrying raw sugar to
00:29refining hubs in the region were stranded or rerouted. There is also a shift happening in
00:36Brazil, the world's top grower. As global fuel prices soar, cane mills there are diverting their
00:42crops away from sugar to focus on ethanol production, a move that may tighten global
00:47supplies even further. And your morning coffee is an immune to the supply chain shock. Robusta and
00:54Arabica prices both surged nearly 3% on Thursday. In Vietnam, farmers are holding back on sales,
01:01wary of the logistical risks of shipping through an active conflict zone.
01:06And for the roasters and refiners further down the line, the challenge is planning for a future
01:11that no one can predict. With no end to the conflict in sight, geopolitical volatility has
01:16overtaken the traditional flaws of supply and demand.
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