Showing posts with label Sugar. Show all posts
Showing posts with label Sugar. Show all posts
Thursday, October 4, 2012
Euro Climbs to Two-Week High Against Dollar
The euro soared to a two-week high against the U.S. dollar Thursday, as that and other factors accounted for a number of commodities also climbing.
Concerning the euro, European Central Bank President Mario Draghi reaffirmed his commitment to maintain and preserve the euro, as well as the monetary system of the area.
That announcement was what pushed the euro up against the dollar, which helped boost many other commodities as well.
Not only were commodities helped though, as the news from the ECB also helped Wall Street equities to soar as well.
Precious metals gold and silver were unsurprisingly higher, as was much of energy, although that was aided by Turkish strikes on Syria, which generated supply concerns, along with a fire at the largest refinery in the U.S, which is run by Exxon Mobil (XOM), along with another refinery fire in Russia.
In agriculture, corn, wheat and soybeans were all up on the day, after hitting a three-month low the day before. Sugar was also up.
Other metals rising included platinum and palladium in the U.S.
Friday, August 6, 2010
Imperial Sugar (Nasdaq:IPSU) Getting Punished on Low Production Guidance
Imperial Sugar (Nasdaq:IPSU) vastly improved its performance over last year, but still are struggling with managing costs, and in getting their damaged refinery online to return to full production.
Earnings for the latest quarter came in at a loss of $5.7 million, or 48 cents a share, an improvement over the $10.5 million, or 89 cents loss a share, in the same quarter in 2009.
Revenue increased to $261 million, or 83 percent, gaining from the $142.3 million year over year.
They continue to struggle with bringing production to full levels at their Port Wentworth, Ga., refinery, where a 2008 explosion ended the lives of 14 employees, and causing heavy damage to the facility.
Some progress is being made though, as the refinery has returned to about 90 percent of its full production capacity.
News it was at 90 percent caused investors to punish the stock today, as it has plunged by higher than 15 percent at one point in the trading session, and stands at $11.80, a drop of $1.79, or 13.17 percent as of 1:50 PM EDT.
CEO John Sheptor said, "Equipment and process improvements led to better production volumes in the quarter, but the average production rate remains below our potential."
Earnings for the latest quarter came in at a loss of $5.7 million, or 48 cents a share, an improvement over the $10.5 million, or 89 cents loss a share, in the same quarter in 2009.
Revenue increased to $261 million, or 83 percent, gaining from the $142.3 million year over year.
They continue to struggle with bringing production to full levels at their Port Wentworth, Ga., refinery, where a 2008 explosion ended the lives of 14 employees, and causing heavy damage to the facility.
Some progress is being made though, as the refinery has returned to about 90 percent of its full production capacity.
News it was at 90 percent caused investors to punish the stock today, as it has plunged by higher than 15 percent at one point in the trading session, and stands at $11.80, a drop of $1.79, or 13.17 percent as of 1:50 PM EDT.
CEO John Sheptor said, "Equipment and process improvements led to better production volumes in the quarter, but the average production rate remains below our potential."
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.
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.
Friday, April 2, 2010
Sugar Futures Remain Under Pressure
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.
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.
Wednesday, March 24, 2010
Raw Sugar Prices Lowest Since 2006
Raw Sugar Prices Plunge
We haven't seen raw sugar prices this low since June 2006, as the sweetener dropped to over 7 percent to finish the session at 16.57 cents a pound.
Most of the ongoing fall in raw sugar prices has come from the supply coming out of India, where it increasingly looks like a bumber crop this year.
In February raw sugar had hit its highest levels in 29 years, but now has dropped 45 percent since that time.
Anyalysts say there is panic selling now with raw sugar as there are no clues as to when it'll bottom out.
Raw Sugar Prices Plunge
We haven't seen raw sugar prices this low since June 2006, as the sweetener dropped to over 7 percent to finish the session at 16.57 cents a pound.
Most of the ongoing fall in raw sugar prices has come from the supply coming out of India, where it increasingly looks like a bumber crop this year.
In February raw sugar had hit its highest levels in 29 years, but now has dropped 45 percent since that time.
Anyalysts say there is panic selling now with raw sugar as there are no clues as to when it'll bottom out.
Raw Sugar Prices Plunge
Wednesday, March 10, 2010
Commodities: Sugar Hits 7-month Low
Sugar Futures Down
After a number of defaults, sugar futures in the U.S. dropped to 7-month lows, as sugar mills in India backed out of deals to import 100,000 tons of sugar from the U.S.
This is the eight loss for sugar in the last ten sessions, making one wonder how low it'll go before it rebounds.
Today the sugar futures sold for below 20 cents a pound, falling to 18.82 a pound at its worst; the lowest sugar futures price since the early part of August 2009.
Sugar Futures Down
After a number of defaults, sugar futures in the U.S. dropped to 7-month lows, as sugar mills in India backed out of deals to import 100,000 tons of sugar from the U.S.
This is the eight loss for sugar in the last ten sessions, making one wonder how low it'll go before it rebounds.
Today the sugar futures sold for below 20 cents a pound, falling to 18.82 a pound at its worst; the lowest sugar futures price since the early part of August 2009.
Sugar Futures Down
Thursday, February 4, 2010
European Union Increases Sugar Exports
Sugar Exports
In a move that has angered some of its trading competitors, the European Union decided to export and additional 500,000 metric tons of sugar, which major sugar exporters Brazil, Thailand and Australia have become upset over because of limitations imposed by the World Trade Organization.
The complaint centers around the exportation of subsidized sugar, which was supposed to be limited to 1.37 million tons based on a 2005 WTO decision.
The EU attempts to get around this by saying the exports aren't enjoying any benefits from a subsidy, and so they don't consider it to be subject to the imposed limitations.
This is another way of saying because sugar prices are high the subsidies don't apply. Other exporters will be hurt by the extra sugar on the market which will drive prices down.
Sugar Exports
In a move that has angered some of its trading competitors, the European Union decided to export and additional 500,000 metric tons of sugar, which major sugar exporters Brazil, Thailand and Australia have become upset over because of limitations imposed by the World Trade Organization.
The complaint centers around the exportation of subsidized sugar, which was supposed to be limited to 1.37 million tons based on a 2005 WTO decision.
The EU attempts to get around this by saying the exports aren't enjoying any benefits from a subsidy, and so they don't consider it to be subject to the imposed limitations.
This is another way of saying because sugar prices are high the subsidies don't apply. Other exporters will be hurt by the extra sugar on the market which will drive prices down.
Sugar Exports
Wednesday, January 27, 2010
Commodities Prices: Sugar Prices Drop
Commodity Sugar Prices
Sugar prices fell from 29-year highs as commodities as a sector fell as well as the U.S. dollar was stronger, causing most commodity prices to pull back in response.
For sugar, that won't shouldn't be a deterent to further price increases, as continuing strong demand for the sweetener should cause sugar prices to resume their upward climb.
From the early part of December sugar prices have surged by 32 percent, as supply worries along with continuing demand pushed sugar prices higher.
That hasn't stopped countries to continue buying sugar, as new orders from a number of developing countries, including Pakistan and Indonesia keep demand high. Tailand has also recently said production estimates would be lower than expected, causing concerns over the supply side too.
If sugar prices continue to climb and begin to close above 30 cent a pound consistently, it's unsure how high it could end up going. Some traders are holding back on pushing the price even higher as it could cause a huge sell-off which could move prices quickly.
Commodity Sugar Prices
Sugar prices fell from 29-year highs as commodities as a sector fell as well as the U.S. dollar was stronger, causing most commodity prices to pull back in response.
For sugar, that won't shouldn't be a deterent to further price increases, as continuing strong demand for the sweetener should cause sugar prices to resume their upward climb.
From the early part of December sugar prices have surged by 32 percent, as supply worries along with continuing demand pushed sugar prices higher.
That hasn't stopped countries to continue buying sugar, as new orders from a number of developing countries, including Pakistan and Indonesia keep demand high. Tailand has also recently said production estimates would be lower than expected, causing concerns over the supply side too.
If sugar prices continue to climb and begin to close above 30 cent a pound consistently, it's unsure how high it could end up going. Some traders are holding back on pushing the price even higher as it could cause a huge sell-off which could move prices quickly.
Commodity Sugar Prices
Monday, December 14, 2009
Agriculture Commodities Prices Going Up in 2010
It looks like 2010 could be a good year for agricultural commodities investors, especially those hitting it right for those food prices going up. Soybeans seems to be one of those agricultural commodities sure to rise in price in 2010, based on nothing more than continued demand from China. That's enough of a reason to believe soybean prices will continue to rise.
Another factor many are considering is in reference to a number of funds possibly having a lot of interest in the agricultural commodity sector in 2010, making it highly likely for many food prices to increase. While that's a real factor, it's not as important as what these funds are making their determinations by.
If there is a real growing demand for a number of agricultural products, then there will be a corresponding increase in prices. But to base a strategy on attempting to invest along with big funds in the sector is a risk. We should always look at the long term factor and not short term ones. Even so, it's not a certainty, and only a guess that the big funds will go this route. It's a gamble at best to follow as if that's going to be the reality.
Sugar continues its rise in price, and that could definitely be a long term trend based on the growing middle classes in China and India. Usually a growing middle class likes to spend money on sweets and things like that when they have the money to. And that should be the case in these countries, as demand for sugar rises along with sugar prices.
Based on the foolish ethanol policies of the U.S., it is expected that demand for corn will continue to rise, along with corn prices. Wheat prices probably won't fare near as well for some time, as countries continue to over-plant and over-harvest, creating downward pressures on wheat prices, which don't look like they're going to abate any time soon.
Another factor many are considering is in reference to a number of funds possibly having a lot of interest in the agricultural commodity sector in 2010, making it highly likely for many food prices to increase. While that's a real factor, it's not as important as what these funds are making their determinations by.
If there is a real growing demand for a number of agricultural products, then there will be a corresponding increase in prices. But to base a strategy on attempting to invest along with big funds in the sector is a risk. We should always look at the long term factor and not short term ones. Even so, it's not a certainty, and only a guess that the big funds will go this route. It's a gamble at best to follow as if that's going to be the reality.
Sugar continues its rise in price, and that could definitely be a long term trend based on the growing middle classes in China and India. Usually a growing middle class likes to spend money on sweets and things like that when they have the money to. And that should be the case in these countries, as demand for sugar rises along with sugar prices.
Based on the foolish ethanol policies of the U.S., it is expected that demand for corn will continue to rise, along with corn prices. Wheat prices probably won't fare near as well for some time, as countries continue to over-plant and over-harvest, creating downward pressures on wheat prices, which don't look like they're going to abate any time soon.
Thursday, December 3, 2009
Investors Flock to Commodities, Gold
There seems to be very little concern by investors that gold will have a major correction any time soon, as the ongoing weakening of the U.S. dollar has them rushing to the yellow metal for safety and inflation concerns.
Just about every weak now gold breaks a new high, and commodities are becoming hot again, even before the economic recovery really even starts, which shows what will happen with commodity prices once that reality hits.
Spot gold rose to $1,226.10 an ounce recently, and investors like Peter Schiff believe it'll continue riding all the way up to $5,000 an ounce in the years ahead. Commodity superstar Jim Rogers also remains bullish on gold, although he thinks there's a possibility of a correction, and so while he's not buying, he's definitely not sellign either. He's hoping a correction will come and he can buy it at even a cheaper price.
Aluminum
Aluminum has been on its own run in 2009, increasing by an enormous 60 pecent just since March, to reach $2,166 a ton. Much of the reason behind the increase in aluminum price is concern over whether supply can meet the surging demand, as companies and countries will eventually start making major orders again, and stocks as of this writing are at 4.6 million tons.
Copper
Copper is primarily being driven by investors, as stocks stand at 445,400 tons, with demand down, but awaits a real recovery which could cause demand to explode.
Sugar
Supplies of sugar in the top sugar consuming area of the world, including India and Pakistan, have been struggling, and so white sugar futures have surged to a record $635.00 a ton.
Crude Oil
Even though oil increased by 44 cents to $77.04 a barrel, that won't hold, as concerns over too much supply in that case will drive prices down again. Crude stocks increased to more than the projected 2.1 million barrels.
Commodities in general, at this time, are responding to the collapsing U.S. dollar, and the surety of extraordinary inflation in the years ahead from the outrageous bailouts by governments around the world.
As far as this affects the prices of commodities, once the prices are driven by demand again, and investors pour even more into them, it's sure to make the commodity bull market of the last decade look like a calf.
Just about every weak now gold breaks a new high, and commodities are becoming hot again, even before the economic recovery really even starts, which shows what will happen with commodity prices once that reality hits.
Spot gold rose to $1,226.10 an ounce recently, and investors like Peter Schiff believe it'll continue riding all the way up to $5,000 an ounce in the years ahead. Commodity superstar Jim Rogers also remains bullish on gold, although he thinks there's a possibility of a correction, and so while he's not buying, he's definitely not sellign either. He's hoping a correction will come and he can buy it at even a cheaper price.
Aluminum
Aluminum has been on its own run in 2009, increasing by an enormous 60 pecent just since March, to reach $2,166 a ton. Much of the reason behind the increase in aluminum price is concern over whether supply can meet the surging demand, as companies and countries will eventually start making major orders again, and stocks as of this writing are at 4.6 million tons.
Copper
Copper is primarily being driven by investors, as stocks stand at 445,400 tons, with demand down, but awaits a real recovery which could cause demand to explode.
Sugar
Supplies of sugar in the top sugar consuming area of the world, including India and Pakistan, have been struggling, and so white sugar futures have surged to a record $635.00 a ton.
Crude Oil
Even though oil increased by 44 cents to $77.04 a barrel, that won't hold, as concerns over too much supply in that case will drive prices down again. Crude stocks increased to more than the projected 2.1 million barrels.
Commodities in general, at this time, are responding to the collapsing U.S. dollar, and the surety of extraordinary inflation in the years ahead from the outrageous bailouts by governments around the world.
As far as this affects the prices of commodities, once the prices are driven by demand again, and investors pour even more into them, it's sure to make the commodity bull market of the last decade look like a calf.
Saturday, December 13, 2008
Commodities: World Agricultural Supply + Demand
Commodity Grain Stocks Rise Significantly in 2008 - 2009
World Agricultural Supplyand Demand EstimatesUnited States Department of AgricultureAgricultural Marketing Service Economic Research ServiceFarm Service Agency Foreign Agricultural ServiceWASDE-465 Approved by the World Agricultural Outlook Board December 11, 2008
WHEAT:
Projected U.S. wheat ending stocks for 2008/09 are raised 20 million bushels this month onhigher imports and lower food use. Wheat imports are projected 10 million bushels higher as abundant foreign supplies of feed quality wheat and extremely low ocean freight rates provide incentives toimport wheat for domestic feeding. Wheat food use is projected 10 million bushels lower based on thelatest mill-grind data from the U.S. Bureau of Census. High flour extraction rates are limiting year-toyear growth in wheat-milling use. By-class changes to imports and exports are also made this month reflecting the pace of shipments to date. The all-wheat season-average farm price is projected 15cents lower on both ends of the range to $6.40 to $7.00 per bushel. Global 2008/09 wheat production is projected at 684.0 million tons, up 1.6 million from last month. Increases for Canada, Brazil, EU-27, and Serbia more than offset a reduction for Argentina. Production for Canada is raised 1.3 million tons in line with the latest estimates from Statistics Canada. Brazil production is raised 0.4 million tons based on recent government estimates that indicate higher production despite excessive rains during harvest.
Production is raised 0.3 million tons for EU-27 with an increase for the United Kingdom which also experienced heavy harvest time rains that raised uncertainty about final yields. Production is raised 0.1 million tons for Serbia. Production for Argentina is cut 0.5 million tons asharvest results indicate substantial yield variability and reductions caused by extended dryness overthe past few months. World wheat imports and exports for 2008/09 are both lowered slightly this month. Imports are lowered as the increase in U.S. imports is more than offset by 0.2- million- ton reductions for both Malaysia and Vietnam. Exports are lowered as a 0.5-million-ton increase for Canada is more than offset by 0.5 million ton reductions for both Argentina and Australia. Exports are also lowered 0.1 million tons for Malaysia as reduced imports lower flour export prospects. World wheat consumption for 2008/09 is lowered this month mostly reflecting the reduction in U.S.wheat food use. Global wheat feeding is increased 0.3 million tons with increases for Australia and Brazil. Untimely harvest rains in eastern Australia and Brazil have reduced wheat quality in bothcountries. Partly offsetting is a reduction in expected wheat feed use in Vietnam with reduced imports.Global ending stocks are raised 2.1 million tons this month.
Nearly two-thirds of the increase is in North America with Canada and U.S. stocks projected 0.8 million tons and 0.5 million tons higher,respectively.
COARSE GRAINS:
Projected U.S. feed grain ending stocks for 2008/09 are raised this month withincreases for corn, barley, and oats. Corn use is projected lower with increased feed and residual usemore than offset by reductions in ethanol use and exports. Ethanol use is projected 300 million bushels lower this month as prospects for blending above federally mandated levels decline. Financialproblems for ethanol producers are reducing plant capacity utilization for existing plants and delaying plant openings for those facilities still under construction. Falling gasoline prices have also resulted in high relative prices for ethanol, reducing blender incentives. Despite reductions in expected meatproduction, corn feed and residual use is raised 50 million bushels as lower ethanol production reduces the availability of distillers grains. Corn exports are projected 100 million bushels lower reflecting strong competition from larger foreign grain supplies and the slow pace of sales to date. Projected ending stocks are raised 350 million bushels. The season-average farm price is projected at $3.65 to$4.35 per bushel, down on both ends of the range from last month’s $4.00 to $4.80 per bushel.Other U.S. feed grain changes this month reflect reduced prospects for exports and increased prospects for imports that are only partly offset by increased domestic use. Sorghum exports arereduced 10 million bushels based on the slow pace of sales and shipments. Sorghum feeding is raised an offsetting 10 million bushels. Barley imports are raised 5 million bushels and exports reduced 5 million bushels, adding 10 million bushels to ending stocks. Oats imports are raised 5 million bushels increasing projected ending stocks the same amount. The sorghum farm price is projected lower at$3.00 to $3.60 per bushel compared with $3.40 to $4.20 per bushel last month. The projected rangefor the oats farm price is narrowed 10 cents on both ends to $2.80 to $3.00 per bushel. The barley farm price range is raised 15 cents on each end of the range to $4.85 to $5.45 per bushel. The allbarley farm price continues to be supported by high pre-planting contract prices for 2008 malting barley. Global coarse grain supples for 2008/09 are projected 7.3 million tons higher this month with beginning stocks raised 1.6 million tons and production raised 5.7 million tons. Beginning stocks are increased partly reflecting upward revisions to 2007/08 production for Australia and Brazil sorghum and South Africa corn. Increased 2008/09 global coarse grain output is driven by higher projected corn production for China, EU-27, Canada, and Ukraine; higher projected barley production for Canada; and higher sorghum production for countries of Sub-Saharan Africa. China corn production is raised 4 million tons based on early provincial reports. EU-27 corn production is raised 1.4 million tons based on the latest reported data. Canada corn production is raised 0.7 million tons and barley production is raised 0.6 million tons based on the latest Statistics Canada estimates. Ukraine corn production is raised 0.5 million tons in line with yield indications from the final stages of harvesting. Partly offsetting is a reduction of 1.5 million tons for Brazil corn output on early season dryness for the first crop and lower expected area for the second crop. Corn production is also lowered 1.0 million tons for South Africa reflecting reduced area as indicated by planting intentions. Oats production for Australia is lowered 0.2 million tons based on the latest government estimate.World coarse grain imports and exports for 2008/09 are both lowered this month. Global exports are projected 2.3 million tons lower mostly reflecting this month’s reduction in U.S. corn exports. India corn exports are also reduced 0.5 million tons. Partly offsetting are increases for Brazil, Serbia, Canada, and Russia. Global coarse grain feeding is projected up 0.3 million tons as the 1.2-million-ton increase in U.S. corn is mostly offset by reductions in a number of countries. Global coarse grain consumption is projected 7.4 million tons lower mostly on lower expected U.S. ethanol corn use. Global coarse grain stocks for 2008/09 are projected at 165.5 million tons, up 14.6 million from last month, and the highest since 2004/05.
RICE:
Projected U.S. rice beginning stocks and production for 2008/09 are unchanged from a month ago; however, imports are lowered 3 million cwt to 22.5 million. The reduction in the import projectionis due to a slower-than-expected pace of imports early in the marketing year from key suppliers including Thailand and India, and the expectation that the pace will remain depressed the remainder of the marketing year. Long-grain imports are lowered 2 million cwt, while combined medium- and shortgrain imports are lowered 1 million. Although all rice domestic and residual use is unchanged from a month ago, the by-class projections are changed slightly with long-grain raised 1 million cwt and offset by a reduction of 1 million for combined medium- and short-grain. All rice exports are lowered 1 million cwt to 106 million, all in long-grain. Rough rice exports are raised 1 million cwt to 39 million, while combined milled- and brown-exports (on a rough-equivalent basis) are lowered 2 million cwt to 67.0 million. All rice ending stocks are projected at 23.4 million cwt, 2 million cwt below last month, with the reduction all in long-grain. The all rice season-average farm price is forecast at $15.15 to $16.15 per cwt, up 65 cents per cwt on both ends of the range. The long-grain season-average farm price range is projected at $14.50 to $15.50 per cwt, up 65 cents per cwt on each end of the range. The combined medium- and short-grain farm price range is projected at $18.00 to $19.00 per cwt, up $1.00 per cwt on each end. Although global rice prices have trended downward since the beginning of the marketing year, they are declining at a slower-than-expected rate. Government policies in Thailand (intervention program) combined with continued export bans by India and Egypt are affecting global prices. Additionally, monthly farm prices reported by the National Agricultural Statistics Service through November (preliminary) indicate that the season-average price will be higher than projected a month ago, particularly for medium-grain rice. World 2008/09 rice supply and use are changed little from a month ago. Global production is raised slightly because of small increases for South Korea and Uruguay. World imports are raised due to increases for Iran, Iraq, and Venezuela, which are partially offset by a reduction for the United States. Global ending stocks for 2008/09 are projected at 80.8 million tons, up slightly from last month, and 2.3 million tons above 2007/08. Stocks are raised for Iran, Iraq, Venezuela, and Uruguay; and lowered for Australia and the United States.
OILSEEDS:
U.S. oilseed production for 2008/09 is projected at 88.2 million tons, up slightly due to increased cottonseed production. Soybean exports are raised 30 million bushels to 1.05 billion bushels reflecting strong early season shipments and sales, especially to China. Soybean crush is reduced 30million bushels to 1.715 billion, reflecting weak domestic soybean meal consumption and lower soybean meal export prospects, especially to Canada. Projected soybean ending stocks are unchanged at 205million bushels. Soybeans and soybean product prices for 2008/09 are projected lower this month. The U.S. season average soybean price range for 2008/09 is projected at $8.25 to $9.75, down $0.85 on both ends. The soybean meal price is projected at $240 to $300 per short ton, down $15 on both ends of the range. The soybean oil price range is projected at 31 to 35 cents per pound, down 6.5 cents on both ends. Global oilseed production for 2008/09 is projected at a record 418.3 million tons, up 0.4 million tons from last month. Foreign crops account for nearly all of the change with higher estimates for rapeseed and peanuts only partly offset by lower soybean, sunflowerseed, and cottonseed production estimates. Projected soybean production for India increased 0.5 million tons from last month to a record 9.7 million. The change reflects higher yields resulting from this year’s harvest. Paraguay soybean production is reduced 0.7 million tons to 6.5 million tons due to lower planted area. Brazil soybean production is reduced 1 million tons to 59 million due to lower projected area. The reduction reflects recent government surveys that indicate area is expected to be unchanged from 2007/08. Canada rapeseed production is raised 1.7 million tons to a record 12.6 million tons based on the latest survey results from Statistics Canada. Canada’s soybean crop is also increased this month based on the survey. Argentina sunflowerseed production was reduced this month as unusually dry weather prevented producers from meeting earlier expectations. Sunflowerseed production was also reduced for India. Other changes include reduced cottonseed production for Brazil and Uzbekistan, and higher peanut production for India. Global oilseed crush for 2007/08 is reduced 0.5 million tons this month to 348 million due mainly tolower soybean crush for Brazil, Argentina, and the United States. Partly offsetting are increases insoybean crush for India, higher rapeseed crush for Canada and China, and higher sunflowerseed crush for EU-27. Global trade changes include reduced soybean exports for Argentina, Brazil, and Paraguay; Higher rapeseed exports for Canada; and higher rapeseed imports for China.Global oilseed ending stocks for 2007/08 are raised 0.8 million tons to 65.4 million mainly reflecting higher rapeseed stocks in Canada.
SUGAR:
Projected 2008/09 U.S. sugar supply is decreased 26,000 short tons, raw value, from last month, due to revised lower beginning stocks. Imports from Mexico are raised 80,000 tons and offsetby a reduction in imports under the re-export programs, while exports are lowered 80,000 tons to reflect the stronger U.S. dollar exchange rate relative to the Mexican peso. Ending stocks are raised 54,000 tons from last month to 961,000 tons, down 703,000 tons from 2007/08.For 2007/08, imports from Mexico are increased 159,000 tons to reflect additional information from U.S. Customs; and with the revision in ending stocks, the residual statistical discrepancy is lowered to -71,000 tons. For Mexico, estimated ending stocks for 2007/08 (Oct-Sep) are lowered 172,000 metric tons from last month mainly due to the increase in exports. Production and domestic use of sugar in Mexico for 2008/09 are unchanged from last month. With the changes in U.S.-Mexico trade, Mexico’s ending stocks for 2008/09 are lowered 322,000 tons to 1.03 million, down 355,000 tons from 2007/08.
LIVESTOCK, POULTRY, AND DAIRY:
Total U.S. meat production forecasts for 2008 and 2009 arereduced from last month. Forecasts for 2008 for all meats are lowered, reflecting a slowdown in outputduring the fourth quarter to date. The pork production forecast for 2009 is raised as lower feed costs result in slightly heavier weights, but this gain is more than offset by lower forecasts of beef and poultry. Cattle placements for the remainder of 2008 are expected to be lower which will result in reduced beef production in the first half of 2009. Poultry production is forecast lower as poor returns are expected to result in a continuation of production declines for the first part of 2009. Lower feed prices and higher broiler and turkey prices may stabilize production in the latter part of the year.Export forecasts for beef are little changed from last month, reflecting actual third-quarter data. Pork and broiler export forecasts are reduced for 2008 and 2009. Demand is expected to remain relatively weak due to economic uncertainty, and a stronger U.S. dollar may further dampen sales.Cattle, broiler, and turkey price forecasts for both 2008 and 2009 are lowered as demand is weaker than expected. Forecast hog prices are reduced slightly in 2008, but are unchanged for 2009 assupplies of competing meats are lowered. Egg prices are little changed. Milk production forecasts for 2008 and 2009 are reduced slightly from last month. The cow number forecasts are unchanged. Forecast milk per cow for both years is reduced reflecting the continued slowrate of growth in output per cow. Commercial export forecasts for 2008 are raised as export datapoints towards stronger-than-expected sales, especially on a fat basis. However, the forecasts for2009 are unchanged as weaker international demand is expected to limit exports. Fat basis imports for2008 are reduced due to weaker demand but skim-solids imports are adjusted to reflect higher-than expected third-quarter imports. Weakness in demand for fat basis imports is expected to carry into 2009, thus the fat basis import forecast for 2009 is lowered. Sales of nonfat dry milk (NDM) to the CCC are forecast for higher 2008 and 2009. The Class III price for 2008 is raised due to higher cheese prices, but the Class IV price forecast is lower due to lower butter and NDM price forecasts. Class III and Class IV prices for 2009 are reduced from last month as most product price forecasts are lowered. Demand both domestically and in international markets will likely be affected by economic weakness. Although relative product values may encourage milk to shift to cheese production, butter and NDM prices will be pressured by relatively weak demand for much of the year. Cheese prices are forecast weaker as domestic demand lags in a weak economy. Although the whey price is unchanged from last month, weaker cheese prices will push the Class III price lower while lower butter and NDM prices will result in a reduced Class IV price. The 2008 all milk price forecast is unchanged this month, averaging $18.30 to $18.40 per cwt, but the 2009 forecast is lowered to $14.95 to $15.75 per cwt.
COTTON:
The U.S. cotton estimates for 2008/09 show lower domestic mill use and exports compared with last month, resulting in higher ending stocks. Production is raised slightly. Domestic mill use is reduced 100,000 bales, reflecting a marginal decline from the level of recent months. Exports are reduced 750,000 bales, as sharply lower world consumption is anticipated to limit demand for U.S.cotton. Accordingly, ending stocks are raised nearly 15 percent from last month to 7.1 million bales.The forecast range of 41 to 51 cents per pound for the marketing year average farm price is 4 cents lower on both ends of the range. This month’s world cotton forecasts include lower production, consumption, and trade. World production is reduced 1.4 million bales from last month’s estimate, as lower production for India, Brazil, Egypt, and others is partially offset by an increase for Pakistan. World consumption is reduced sharply for the second consecutive month, as deteriorating economic conditions continue to fade demand prospects. Consumption is lowered 2.7 million bales to 116.6 million, with China, India, Pakistan, and Turkey accounting for most of the decrease. The revised world consumption estimate is 5.5 percent lower than 2007/08, which is the largest year-to-year percentage reduction since 1943/44. Consistent with lower world consumption, world trade is reduced 7 percent this month, due mainly to lower imports by China, Pakistan, and Turkey. India, the United States, and Uzbekistan account for most of the reduction in world exports. World stocks are raised 2.4 percent, but are still 2.6 million bales below the beginning level.
Approved by the Secretary of Agriculture and the Chairperson of the World Agricultural Outlook Board, Gerald A. Bange, (202) 720-6030. This report was prepared by the Interagency Commodity Estimates Committees.
APPROVED BY: EDWARD T. SCHAFER SECRETARY OF AGRICULTURE
Commodity grain stocks report
World Agricultural Supplyand Demand EstimatesUnited States Department of AgricultureAgricultural Marketing Service Economic Research ServiceFarm Service Agency Foreign Agricultural ServiceWASDE-465 Approved by the World Agricultural Outlook Board December 11, 2008
WHEAT:
Projected U.S. wheat ending stocks for 2008/09 are raised 20 million bushels this month onhigher imports and lower food use. Wheat imports are projected 10 million bushels higher as abundant foreign supplies of feed quality wheat and extremely low ocean freight rates provide incentives toimport wheat for domestic feeding. Wheat food use is projected 10 million bushels lower based on thelatest mill-grind data from the U.S. Bureau of Census. High flour extraction rates are limiting year-toyear growth in wheat-milling use. By-class changes to imports and exports are also made this month reflecting the pace of shipments to date. The all-wheat season-average farm price is projected 15cents lower on both ends of the range to $6.40 to $7.00 per bushel. Global 2008/09 wheat production is projected at 684.0 million tons, up 1.6 million from last month. Increases for Canada, Brazil, EU-27, and Serbia more than offset a reduction for Argentina. Production for Canada is raised 1.3 million tons in line with the latest estimates from Statistics Canada. Brazil production is raised 0.4 million tons based on recent government estimates that indicate higher production despite excessive rains during harvest.
Production is raised 0.3 million tons for EU-27 with an increase for the United Kingdom which also experienced heavy harvest time rains that raised uncertainty about final yields. Production is raised 0.1 million tons for Serbia. Production for Argentina is cut 0.5 million tons asharvest results indicate substantial yield variability and reductions caused by extended dryness overthe past few months. World wheat imports and exports for 2008/09 are both lowered slightly this month. Imports are lowered as the increase in U.S. imports is more than offset by 0.2- million- ton reductions for both Malaysia and Vietnam. Exports are lowered as a 0.5-million-ton increase for Canada is more than offset by 0.5 million ton reductions for both Argentina and Australia. Exports are also lowered 0.1 million tons for Malaysia as reduced imports lower flour export prospects. World wheat consumption for 2008/09 is lowered this month mostly reflecting the reduction in U.S.wheat food use. Global wheat feeding is increased 0.3 million tons with increases for Australia and Brazil. Untimely harvest rains in eastern Australia and Brazil have reduced wheat quality in bothcountries. Partly offsetting is a reduction in expected wheat feed use in Vietnam with reduced imports.Global ending stocks are raised 2.1 million tons this month.
Nearly two-thirds of the increase is in North America with Canada and U.S. stocks projected 0.8 million tons and 0.5 million tons higher,respectively.
COARSE GRAINS:
Projected U.S. feed grain ending stocks for 2008/09 are raised this month withincreases for corn, barley, and oats. Corn use is projected lower with increased feed and residual usemore than offset by reductions in ethanol use and exports. Ethanol use is projected 300 million bushels lower this month as prospects for blending above federally mandated levels decline. Financialproblems for ethanol producers are reducing plant capacity utilization for existing plants and delaying plant openings for those facilities still under construction. Falling gasoline prices have also resulted in high relative prices for ethanol, reducing blender incentives. Despite reductions in expected meatproduction, corn feed and residual use is raised 50 million bushels as lower ethanol production reduces the availability of distillers grains. Corn exports are projected 100 million bushels lower reflecting strong competition from larger foreign grain supplies and the slow pace of sales to date. Projected ending stocks are raised 350 million bushels. The season-average farm price is projected at $3.65 to$4.35 per bushel, down on both ends of the range from last month’s $4.00 to $4.80 per bushel.Other U.S. feed grain changes this month reflect reduced prospects for exports and increased prospects for imports that are only partly offset by increased domestic use. Sorghum exports arereduced 10 million bushels based on the slow pace of sales and shipments. Sorghum feeding is raised an offsetting 10 million bushels. Barley imports are raised 5 million bushels and exports reduced 5 million bushels, adding 10 million bushels to ending stocks. Oats imports are raised 5 million bushels increasing projected ending stocks the same amount. The sorghum farm price is projected lower at$3.00 to $3.60 per bushel compared with $3.40 to $4.20 per bushel last month. The projected rangefor the oats farm price is narrowed 10 cents on both ends to $2.80 to $3.00 per bushel. The barley farm price range is raised 15 cents on each end of the range to $4.85 to $5.45 per bushel. The allbarley farm price continues to be supported by high pre-planting contract prices for 2008 malting barley. Global coarse grain supples for 2008/09 are projected 7.3 million tons higher this month with beginning stocks raised 1.6 million tons and production raised 5.7 million tons. Beginning stocks are increased partly reflecting upward revisions to 2007/08 production for Australia and Brazil sorghum and South Africa corn. Increased 2008/09 global coarse grain output is driven by higher projected corn production for China, EU-27, Canada, and Ukraine; higher projected barley production for Canada; and higher sorghum production for countries of Sub-Saharan Africa. China corn production is raised 4 million tons based on early provincial reports. EU-27 corn production is raised 1.4 million tons based on the latest reported data. Canada corn production is raised 0.7 million tons and barley production is raised 0.6 million tons based on the latest Statistics Canada estimates. Ukraine corn production is raised 0.5 million tons in line with yield indications from the final stages of harvesting. Partly offsetting is a reduction of 1.5 million tons for Brazil corn output on early season dryness for the first crop and lower expected area for the second crop. Corn production is also lowered 1.0 million tons for South Africa reflecting reduced area as indicated by planting intentions. Oats production for Australia is lowered 0.2 million tons based on the latest government estimate.World coarse grain imports and exports for 2008/09 are both lowered this month. Global exports are projected 2.3 million tons lower mostly reflecting this month’s reduction in U.S. corn exports. India corn exports are also reduced 0.5 million tons. Partly offsetting are increases for Brazil, Serbia, Canada, and Russia. Global coarse grain feeding is projected up 0.3 million tons as the 1.2-million-ton increase in U.S. corn is mostly offset by reductions in a number of countries. Global coarse grain consumption is projected 7.4 million tons lower mostly on lower expected U.S. ethanol corn use. Global coarse grain stocks for 2008/09 are projected at 165.5 million tons, up 14.6 million from last month, and the highest since 2004/05.
RICE:
Projected U.S. rice beginning stocks and production for 2008/09 are unchanged from a month ago; however, imports are lowered 3 million cwt to 22.5 million. The reduction in the import projectionis due to a slower-than-expected pace of imports early in the marketing year from key suppliers including Thailand and India, and the expectation that the pace will remain depressed the remainder of the marketing year. Long-grain imports are lowered 2 million cwt, while combined medium- and shortgrain imports are lowered 1 million. Although all rice domestic and residual use is unchanged from a month ago, the by-class projections are changed slightly with long-grain raised 1 million cwt and offset by a reduction of 1 million for combined medium- and short-grain. All rice exports are lowered 1 million cwt to 106 million, all in long-grain. Rough rice exports are raised 1 million cwt to 39 million, while combined milled- and brown-exports (on a rough-equivalent basis) are lowered 2 million cwt to 67.0 million. All rice ending stocks are projected at 23.4 million cwt, 2 million cwt below last month, with the reduction all in long-grain. The all rice season-average farm price is forecast at $15.15 to $16.15 per cwt, up 65 cents per cwt on both ends of the range. The long-grain season-average farm price range is projected at $14.50 to $15.50 per cwt, up 65 cents per cwt on each end of the range. The combined medium- and short-grain farm price range is projected at $18.00 to $19.00 per cwt, up $1.00 per cwt on each end. Although global rice prices have trended downward since the beginning of the marketing year, they are declining at a slower-than-expected rate. Government policies in Thailand (intervention program) combined with continued export bans by India and Egypt are affecting global prices. Additionally, monthly farm prices reported by the National Agricultural Statistics Service through November (preliminary) indicate that the season-average price will be higher than projected a month ago, particularly for medium-grain rice. World 2008/09 rice supply and use are changed little from a month ago. Global production is raised slightly because of small increases for South Korea and Uruguay. World imports are raised due to increases for Iran, Iraq, and Venezuela, which are partially offset by a reduction for the United States. Global ending stocks for 2008/09 are projected at 80.8 million tons, up slightly from last month, and 2.3 million tons above 2007/08. Stocks are raised for Iran, Iraq, Venezuela, and Uruguay; and lowered for Australia and the United States.
OILSEEDS:
U.S. oilseed production for 2008/09 is projected at 88.2 million tons, up slightly due to increased cottonseed production. Soybean exports are raised 30 million bushels to 1.05 billion bushels reflecting strong early season shipments and sales, especially to China. Soybean crush is reduced 30million bushels to 1.715 billion, reflecting weak domestic soybean meal consumption and lower soybean meal export prospects, especially to Canada. Projected soybean ending stocks are unchanged at 205million bushels. Soybeans and soybean product prices for 2008/09 are projected lower this month. The U.S. season average soybean price range for 2008/09 is projected at $8.25 to $9.75, down $0.85 on both ends. The soybean meal price is projected at $240 to $300 per short ton, down $15 on both ends of the range. The soybean oil price range is projected at 31 to 35 cents per pound, down 6.5 cents on both ends. Global oilseed production for 2008/09 is projected at a record 418.3 million tons, up 0.4 million tons from last month. Foreign crops account for nearly all of the change with higher estimates for rapeseed and peanuts only partly offset by lower soybean, sunflowerseed, and cottonseed production estimates. Projected soybean production for India increased 0.5 million tons from last month to a record 9.7 million. The change reflects higher yields resulting from this year’s harvest. Paraguay soybean production is reduced 0.7 million tons to 6.5 million tons due to lower planted area. Brazil soybean production is reduced 1 million tons to 59 million due to lower projected area. The reduction reflects recent government surveys that indicate area is expected to be unchanged from 2007/08. Canada rapeseed production is raised 1.7 million tons to a record 12.6 million tons based on the latest survey results from Statistics Canada. Canada’s soybean crop is also increased this month based on the survey. Argentina sunflowerseed production was reduced this month as unusually dry weather prevented producers from meeting earlier expectations. Sunflowerseed production was also reduced for India. Other changes include reduced cottonseed production for Brazil and Uzbekistan, and higher peanut production for India. Global oilseed crush for 2007/08 is reduced 0.5 million tons this month to 348 million due mainly tolower soybean crush for Brazil, Argentina, and the United States. Partly offsetting are increases insoybean crush for India, higher rapeseed crush for Canada and China, and higher sunflowerseed crush for EU-27. Global trade changes include reduced soybean exports for Argentina, Brazil, and Paraguay; Higher rapeseed exports for Canada; and higher rapeseed imports for China.Global oilseed ending stocks for 2007/08 are raised 0.8 million tons to 65.4 million mainly reflecting higher rapeseed stocks in Canada.
SUGAR:
Projected 2008/09 U.S. sugar supply is decreased 26,000 short tons, raw value, from last month, due to revised lower beginning stocks. Imports from Mexico are raised 80,000 tons and offsetby a reduction in imports under the re-export programs, while exports are lowered 80,000 tons to reflect the stronger U.S. dollar exchange rate relative to the Mexican peso. Ending stocks are raised 54,000 tons from last month to 961,000 tons, down 703,000 tons from 2007/08.For 2007/08, imports from Mexico are increased 159,000 tons to reflect additional information from U.S. Customs; and with the revision in ending stocks, the residual statistical discrepancy is lowered to -71,000 tons. For Mexico, estimated ending stocks for 2007/08 (Oct-Sep) are lowered 172,000 metric tons from last month mainly due to the increase in exports. Production and domestic use of sugar in Mexico for 2008/09 are unchanged from last month. With the changes in U.S.-Mexico trade, Mexico’s ending stocks for 2008/09 are lowered 322,000 tons to 1.03 million, down 355,000 tons from 2007/08.
LIVESTOCK, POULTRY, AND DAIRY:
Total U.S. meat production forecasts for 2008 and 2009 arereduced from last month. Forecasts for 2008 for all meats are lowered, reflecting a slowdown in outputduring the fourth quarter to date. The pork production forecast for 2009 is raised as lower feed costs result in slightly heavier weights, but this gain is more than offset by lower forecasts of beef and poultry. Cattle placements for the remainder of 2008 are expected to be lower which will result in reduced beef production in the first half of 2009. Poultry production is forecast lower as poor returns are expected to result in a continuation of production declines for the first part of 2009. Lower feed prices and higher broiler and turkey prices may stabilize production in the latter part of the year.Export forecasts for beef are little changed from last month, reflecting actual third-quarter data. Pork and broiler export forecasts are reduced for 2008 and 2009. Demand is expected to remain relatively weak due to economic uncertainty, and a stronger U.S. dollar may further dampen sales.Cattle, broiler, and turkey price forecasts for both 2008 and 2009 are lowered as demand is weaker than expected. Forecast hog prices are reduced slightly in 2008, but are unchanged for 2009 assupplies of competing meats are lowered. Egg prices are little changed. Milk production forecasts for 2008 and 2009 are reduced slightly from last month. The cow number forecasts are unchanged. Forecast milk per cow for both years is reduced reflecting the continued slowrate of growth in output per cow. Commercial export forecasts for 2008 are raised as export datapoints towards stronger-than-expected sales, especially on a fat basis. However, the forecasts for2009 are unchanged as weaker international demand is expected to limit exports. Fat basis imports for2008 are reduced due to weaker demand but skim-solids imports are adjusted to reflect higher-than expected third-quarter imports. Weakness in demand for fat basis imports is expected to carry into 2009, thus the fat basis import forecast for 2009 is lowered. Sales of nonfat dry milk (NDM) to the CCC are forecast for higher 2008 and 2009. The Class III price for 2008 is raised due to higher cheese prices, but the Class IV price forecast is lower due to lower butter and NDM price forecasts. Class III and Class IV prices for 2009 are reduced from last month as most product price forecasts are lowered. Demand both domestically and in international markets will likely be affected by economic weakness. Although relative product values may encourage milk to shift to cheese production, butter and NDM prices will be pressured by relatively weak demand for much of the year. Cheese prices are forecast weaker as domestic demand lags in a weak economy. Although the whey price is unchanged from last month, weaker cheese prices will push the Class III price lower while lower butter and NDM prices will result in a reduced Class IV price. The 2008 all milk price forecast is unchanged this month, averaging $18.30 to $18.40 per cwt, but the 2009 forecast is lowered to $14.95 to $15.75 per cwt.
COTTON:
The U.S. cotton estimates for 2008/09 show lower domestic mill use and exports compared with last month, resulting in higher ending stocks. Production is raised slightly. Domestic mill use is reduced 100,000 bales, reflecting a marginal decline from the level of recent months. Exports are reduced 750,000 bales, as sharply lower world consumption is anticipated to limit demand for U.S.cotton. Accordingly, ending stocks are raised nearly 15 percent from last month to 7.1 million bales.The forecast range of 41 to 51 cents per pound for the marketing year average farm price is 4 cents lower on both ends of the range. This month’s world cotton forecasts include lower production, consumption, and trade. World production is reduced 1.4 million bales from last month’s estimate, as lower production for India, Brazil, Egypt, and others is partially offset by an increase for Pakistan. World consumption is reduced sharply for the second consecutive month, as deteriorating economic conditions continue to fade demand prospects. Consumption is lowered 2.7 million bales to 116.6 million, with China, India, Pakistan, and Turkey accounting for most of the decrease. The revised world consumption estimate is 5.5 percent lower than 2007/08, which is the largest year-to-year percentage reduction since 1943/44. Consistent with lower world consumption, world trade is reduced 7 percent this month, due mainly to lower imports by China, Pakistan, and Turkey. India, the United States, and Uzbekistan account for most of the reduction in world exports. World stocks are raised 2.4 percent, but are still 2.6 million bales below the beginning level.
Approved by the Secretary of Agriculture and the Chairperson of the World Agricultural Outlook Board, Gerald A. Bange, (202) 720-6030. This report was prepared by the Interagency Commodity Estimates Committees.
APPROVED BY: EDWARD T. SCHAFER SECRETARY OF AGRICULTURE
Commodity grain stocks report
Tuesday, November 4, 2008
Commodities: Sugar Production in India Could Drop
Indian sugar prices drop as the commodity weakens in industry battle
A battle between sugar mills and sugarcane farmers could end up causing the Indian sugar industry about 25 percent in production, as the combatants await an Indian Supreme Court decision on pricing.
Farmers in Uttar Pradesh are starting to supply high-recovery sugarcane to jaggery units, threatening the sugar output in India this year.
With Indian farmers needing to turn sell their crop in order to plant their fields in wheat, pressure is on them to sell.
Sugarcane loses its sucrose (sweetener) content over a period of time, also pressuring farmers to sell quickly. Cane with lower sugar content isn't usable in sugar mills.
When Uttar Pradesh raised prices above the state advised price (SAP), it started the battle, as sugar mills in India argue they can't crush can profitably at those prices.
The two participants are awaiting a decision of the Supreme Court and Allahabad High Court. Until that time the commodity will struggle to maintain prices.
A battle between sugar mills and sugarcane farmers could end up causing the Indian sugar industry about 25 percent in production, as the combatants await an Indian Supreme Court decision on pricing.
Farmers in Uttar Pradesh are starting to supply high-recovery sugarcane to jaggery units, threatening the sugar output in India this year.
With Indian farmers needing to turn sell their crop in order to plant their fields in wheat, pressure is on them to sell.
Sugarcane loses its sucrose (sweetener) content over a period of time, also pressuring farmers to sell quickly. Cane with lower sugar content isn't usable in sugar mills.
When Uttar Pradesh raised prices above the state advised price (SAP), it started the battle, as sugar mills in India argue they can't crush can profitably at those prices.
The two participants are awaiting a decision of the Supreme Court and Allahabad High Court. Until that time the commodity will struggle to maintain prices.
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