It sure is becoming expensive to have a sweet tooth! India used to export sugar, but has recently become a net imported of sugar.
from Dow Jones newswires:
Talk about a sugar high.
World sugar futures blistered technical resistance levels to surge to new
28-year tops, as massive speculative buying and a constructive fundamental
picture kept the bullish wheels turning.
Nearby October sugar on ICE Futures U.S. rose 101 points to settle at 20.81
cents, near the session top of 20.85 cents.
Sugar futures haven't been this high since April 1981.
For the week to Friday, October sugar soared 220 points, or 11.8%, as traders
realized how entrenched global crop problems had become.
Lower production in India due to dry weather and lower output out of Brazil
are ongoing supportive features, with strengthening global demand and short
stockpiles highlighting the market's balance sheet.
"We went through resistance like a hot knife through butter, and now bulls
will be looking at 23 cents and 23.5 cents for new targets," said Jack
Scoville, analyst and vice president at Price Futures Group.
"There's still a lot of concern about India, and the monsoon doesn't seem to
be getting any better. So people are pretty fired up about it," he said.
An erratic monsoon season in India has left sugarcane fields much drier than
normal for this time of year, and has caused analysts and crop experts to lower
their output projections. Monsoon rains are expected to remain weak for the
next four to five days, the official India Meteorological Department said
Friday.
