Sugar: prices down, huge global surplus

Food Apr 25, 2013 No Comments

SugarSugar futures are down 10.8% this year, ending Wednesday at their lowest level since July 2010. Sugar prices are tumbling as investors brace for a rush of supply from Brazil this year.

Even as prices plumb nearly three-year lows, investors are betting that they will drop even more. Positions that profit when sugar prices fall hit an all-time high of 212,419 contracts—worth about $4.5 billion—on April 9.

The number of these “short” contracts held by investors is up 65% from the start of the year.

The wager is that Brazil, the world’s biggest sugar producer, will report a record crop this year, leading to a huge global surplus.

via Traders Bet on a Sugar Rush –

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

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