Longest Sugar Glut in Decade Extends on Indian Crop

Commodities , Food Nov 08, 2012 No Comments

Sugar glutSugar will expand global supply already forecast by the International Sugar Organization to reach a record this season. Producers from Russia to Thailand raised output after prices averaged the most in three decades in 2011.

Futures fell 28 percent since March on prospects for a third straight annual surplus, helping to contain the surge in global food costs caused by droughts in the U.S., Europe and Australia.

Sugar’s slump this year contrasts with an 12 percent gain in the S&P GSCI Agriculture Index of eight commodities, as the worst U.S. drought since 1956 parched wheat, corn and soybeans. The MSCI All-Country World Index of equities rose 8.8 percent since the start of January as Treasuries returned 2.4 percent, a Bank of America Corp. index shows.

via Longest Sugar Glut in Decade Extends on Indian Crop: Commodities – Bloomberg.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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