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.
Showing posts with label Sugar Demand. Show all posts
Showing posts with label Sugar Demand. Show all posts
Monday, June 14, 2010
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
Monday, February 8, 2010
George Soros' Possible Adecoagro IPO
George Soros Adecoagro IPO
Adecoagro is a venture capital company formed in 2002 by a group of investors including billionaire George Soros. The company invests in assets like renewable energy and agriculture in Latin America.
If the time seems right, rather than just raising capital from its private shareholders, the company is thinking of going the initial public offering (IPO) route as the means to raise more capital.
With sugar and ethanol continuing to be an important and profitable part of Brazil, the company has a strong reason and base product to make it an attractive IPO candidate.
The company already has plans in place to increase its sugar-cane crushing to 11 million metric tons in 2016, a major increase from the current 4.8 million they are crushing now. Another strategy is to build a huge can processor in Mato Grosso do Sul sometime in 2010. The acquisition of a sugar mill in Brazil is another possibility during the year.
At this time Adecoagro either leases or owns close to 840,000 acres of farmland in Brazil, Argentina and Uruguay. They grow a number of agricultural products, including soybeans, rice and coffee on the acreage, while also producing a variety of dairy products too.
With land in Brazil skyrocketing because of increasing commodity prices and the value of the local currency, Adecoagro has worked on securing long-term land leasing agreements to lock in prices in order to manage costs.
It's not a surety concerning the IPO, as the company can also raise significant funds with its current base of investors in the company.
George Soros Adecoagro IPO
Adecoagro is a venture capital company formed in 2002 by a group of investors including billionaire George Soros. The company invests in assets like renewable energy and agriculture in Latin America.
If the time seems right, rather than just raising capital from its private shareholders, the company is thinking of going the initial public offering (IPO) route as the means to raise more capital.
With sugar and ethanol continuing to be an important and profitable part of Brazil, the company has a strong reason and base product to make it an attractive IPO candidate.
The company already has plans in place to increase its sugar-cane crushing to 11 million metric tons in 2016, a major increase from the current 4.8 million they are crushing now. Another strategy is to build a huge can processor in Mato Grosso do Sul sometime in 2010. The acquisition of a sugar mill in Brazil is another possibility during the year.
At this time Adecoagro either leases or owns close to 840,000 acres of farmland in Brazil, Argentina and Uruguay. They grow a number of agricultural products, including soybeans, rice and coffee on the acreage, while also producing a variety of dairy products too.
With land in Brazil skyrocketing because of increasing commodity prices and the value of the local currency, Adecoagro has worked on securing long-term land leasing agreements to lock in prices in order to manage costs.
It's not a surety concerning the IPO, as the company can also raise significant funds with its current base of investors in the company.
George Soros Adecoagro IPO
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
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