Supply Concerns Sugar Prices Economics Commentary

Supply Concerns pelf sets By LESLIE JOSEPHS Tradition entirelyy volatile downhearted commodities, whose prices are laid-backly sensitive to adverse weather, stick out soared this row on lower production and shrinking stockpiles. Farmers sit on a heap of scrapingcane outside a profits hoagy in north India. Sugar prices rose 6.6% for the week. Sugar-supply concerns, particularly on bad weather in Australia and possibly lower-than-expected exports from no(prenominal) 2 manufacturing business India, alike have driven up prices. On Friday, U.S. Sugar Corp. express below-freezing temperatures this month in Florida earnestly damaged its scratchcane crop. Were predicting both(prenominal) the loss of tonnage and scrawl yields, give tongue to Judy Sanchez, spokeswoman for the Clewiston, Fla.-based grower and processor of profits. The exact loss has not yet been determined, Ms. Sanchez added. World sugar prices gained 4.8% on Friday, closing at a quin- week high of 32.5 cents a pound. They are up 12% this week. World and U.S. domestic sugar prices dont converge because the U.S. limits sugar imports. U.S. sugar futures were trading around five cents higher(prenominal)(prenominal) than global bench mark prices. This is a very controlled market, said Jack Scoville, a vice president at Price Futures concourse, regarding the domestic sugar market.

ruffianly weather and low stocks have pushed commodities prices, including grains, higher this year. The longer-term trend is for higher food prices, which could reach inscribe levels by the end of the year, th e position together Nations Food and mark! et-gardening Organization said Friday. Almost all commodities are in a strict supply-demand situation, and so we would carry to see high production in all commodities, which is unlikely, said Abdolreza Abbassian, secretary of the FAOs Intergovernmental Group on Foodgrains. Many markets could face make up higher and more volatile prices ahead, he said. While tight supplies elevate coffee and sugar prices this week, speculative buying is also panorama to have had a strong hand in...If you emergency to get a full essay, order it on our website: OrderCustomPaper.com

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