Tuesday, May 26, 2009

Sugar Output Not So Sweet

Indian sugar output will plunge to 16.8 million tons, contributing to a decline in global inventories this year of 11 percent from last year, according to a new report by the U.S. Department of Agriculture.

Mills will process about 148.7 million metric tons by September compared to the previous forecast of 158.8.

The news caused a slight spike in sugar futures in India, the second largest supplier behind Brazil, but spot demand remains low. CEO of Cosan SA Industria e Comercio, one of the world's largest cane producers, predicts prices could rise as much as 20% by the end of the year.

No comments:

Post a Comment