After a strong rally that took the raw sugar market price to a high of 36.08 cents/lb in early February, prices have dropped following good crops in India, Thailand and other producing countries, reports Dow Jones.
The report adds:
Raw sugar futures traded on the Intercontinental Exchange, or ICE, could fall to as low as 16 U.S. cents a pound by November-December because of a better-than-expected crop in Thailand and the onset of the Brazilian harvest, but prices could average 20 cents a pound over the next year, Dow Jones reports an industry analyst as saying.
See the full report in the tradingcharts.com website.
When the local sugar price was previously raised in January 2011, the Domestic Trade, Cooperatives and Consumerism Ministry Secretary-General was reported as saying the increase in sugar price was necessary due to the rise in the price of the raw commodity on the world market, especially since August, from between 14 and 16 US cents (48 and 55 sen) to 27 US cents (92 sen).
The price as at 10 May 2011 now for July delivery is around 21 US cents.
The global price has now fallen, and we get another local price hike?
(Thanks to blog reader S Chuah for the alert.)