Sugar to Pile Up as Demand Stays Weak

Agricultural , Food Sep 11, 2012 No Comments

SugarFutures dropped to a two-year low in New York last week after drier weather in Brazil, the world’s biggest producer of the sweetener, accelerated harvesting, while improvement in rains last month in India, the second- largest grower, improved crop prospects. The sweetener has declined 31 percent in the past year on expectations that global supplies will top usage.

Sugar, trading near a two-year low, is set to pile up in producing countries next season as a lack of demand amid a global surplus forces growers to hold back supplies, according to Kingsman SA.

Société Générale SA cut its forecast for raw-sugar futures in the fourth quarter by 2 cents to an average of 21.5 cents a pound as dry weather allowed the harvest to accelerate in Brazil, analysts led by Michael Haigh, New York-based global head of commodities research, said in a report yesterday.

via Sugar to Pile Up as Demand Stays Weak, Kingsman Says – Bloomberg.

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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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