Supply Concerns Sugar Prices Economics Commentary

Supply Concerns loot impairments By LESLIE JOSEPHS Tradition entirelyy volatile still commodities, whose prices are elevatedly sensitive to adverse weather, turn over soared this variant on lower production and shrinking stockpiles. Farmers sit on a heap of scrapingcane outside a profits milling machinery in north India. Sugar prices rose 6.6% for the week. Sugar-supply concerns, particularly on bad weather in Australia and possibly lower-than-expected exports from no(prenominal) 2 maker India, alike have driven up prices. On Friday, U.S. Sugar Corp. express below-freezing temperatures this month in Florida earnestly damaged its scratchcane crop. Were predicting both(prenominal) the loss of tonnage and saccharify yields, state Judy Sanchez, spokeswoman for the Clewiston, Fla.-based grower and mainframe of scratch. The exact loss has not yet been determined, Ms. Sanchez added. World sugar prices gained 4.8% on Friday, closing at a v-week high of 32.5 cents a pound. They are up 12% this week. World and U.S. domestic sugar prices dont converge because the U.S. limits sugar imports. U.S. sugar futures were trading around five cents high(prenominal) than global bench mark prices. This is a very controlled market, said Jack Scoville, a vice president at Price Futures base, regarding the domestic sugar market.

ruffianly weather and low stocks have pushed commodities prices, including grains, higher this year. The longer-term trend is for higher food prices, which could reach phonograph record levels by the end of the year, the compensate tog ether Nations Food and agriculture Organiza! tion said Friday. Almost all commodities are in a strict supply-demand situation, and so we would carry to see high production in all commodities, which is unlikely, said Abdolreza Abbassian, secretary of the FAOs Intergovernmental Group on Foodgrains. Many markets could face make up higher and more volatile prices ahead, he said. While tight supplies bring up coffee and sugar prices this week, speculative buying is also cerebration to have had a strong hand in...If you emergency to get a full essay, order it on our website: OrderCustomPaper.com

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