Sugar futures going down in price
Even though sugar futures had a brief rally on Thursday, expectations are there will continue to be downward pressure on sugar prices, as nothing in the fundamentals have changed.
Sugar futures recently closed at nine-month lows, while closing at 16.70 cents a pound Thursday, an increase of 11 cents. It fell as low as 15.46 cents a pound earlier before rebounding.
Since February 1, sugar future prices have had no support after reaching a 29-year high of 30.40 cents on that day. In 2010 sugar future prices have plunged by 38 percent in the first three months.
Falling sugar future prices come from the huge sugar crop in Brazil and India, the two leading producers in the world.
Demand seems to be falling at the time of huge supply of sugar. It's as simple as that, and it won't change for some time.
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