Monday, June 14, 2010

Sugar Futures Up on Low Inventory

Several things have fallen into place for sugar, and prices have responded by increasing for the fifth day in a row.

The fall in the value of the dollar has been one of those elements helping sugar, as it has all the commodities recently, as the U.S. dollar again has dropped against the euro and other major currencies.

Today prices for raw sugar increased to 15.99 cents a pound in New York, a $0.15 gain, or 0.9 percent.

White-sugar futures in London increased $2.50 for August delivery, to $526.50 on the Liffe exchange, or 0.5 percent.

Over the last couple of seasons, sugar inventory has fallen 27 million tons, as supply continued to exceed demand.

Last year there were some sugar price gains made from a drought in India and more rain than normal in Brazil.

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