Based on concerns over potential crop damage, Goldman Sachs Group Inc. (NYSE:GS) said the price of sugar will rise, prompting sugar prices to increase to their highest levels in three months in New York.
Goldman analysts said, “Uncertainty over the 2010-11 crop will likely become the main driver for sugar prices over the coming months,” adding, “lower-than-previously-expected production for both Brazil, the largest producer and exporter, and Australia, the third-largest exporter,” will add to the price increase.
The three-month price estimate for raw sugar from Goldman was raised to 20 cents a pound, while their six-and 12-month estimates were increased from 12 cents a pound to 16 cents a pound.
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