Limited supply continues to drive increased pricing:
- Sugar prices remain strong, with the world sugar price hitting a 29-year high and London sugar futures hitting an all-time high.
- World sugar production is expected to fall short of consumption for the second consecutive year primarily due to poor crops the last two years in India and Brazil.
- Mexico is still trying to replenish its depleted stocks from last year.
- Prices have increased another 10% in the quarter and are 30-40% higher than a year ago.
Sugar Shortage May Peak in the 3rd Quarter of 2010:
- The global shortage is likely to peak in the third quarter this year on demand from the U.S., Mexico, India, and Pakistan, according to U.S.-based Tropix Capital Management. (Source: 2/9/10, Bloomberg News)
- India, China, Indonesia, Pakistan, Egypt, and Russia are among countries planning to buy sugar to cool domestic prices, worsening a deficit that may reach 11.92 million tons in the year ending April 30, Kingsman SA says. (Source: 2/9/10, Bloomberg News)
- The shortfall may be 5 million to 6 million tons this season, according to Tropix. Global stockpiles will drop to the lowest levels in 20 years. (Source: 2/11/10, Bloomberg News)
On the Horizon:
- Sugar output in Brazil, the top producer, may increase by as much as 4.4 million tons in 2010-2011, as growers take advantage of record prices. (Source: 2/9/10, Bloomberg News)
- Fresh production of sugar is not expected to become available until 4th quarter of 2010
<Home
|
|
 |
|
