Saturday, April 24, 2010
Sugar's record price
Prices of sugar are not expected to fall due to higher usage of sugar. About 70 percent of manufactured food has sugar ingredient. World's collective tooth is getting sweeter. On one side developing countries are starting to enjoy the nicer things in life whereas on the other hand developed countries are seeking some comfort in a cookie jar. This year USDA (US Dept. of Agriculture) estimated that worldwide sugar comsumption will rise by 1.5m tons. Supply won't be able to sustain the demand, even though prices are not expected to drop. Because of the curent global situation on sugar market, bad weather, monsoons in India and Mexico have damaged sugar crops. Not even Brazil, the larger sugar producer can't help prices to drop as now half of sugar it produces is used to make ethanol. And that is all a very good news for American sugar producers.