Raw sugar seen jumping 20% if Brazil stays dry
Published: 09/01/2010, 3:13:19 PM
Raw sugar may climb as much as 20% this month if dry weather in Brazil's Center South, the world's largest producing region, persists, according to Bloomberg.
The price may advance to 21.7 cents to 23.7 cents a pound, said Michael McDougall, a senior vice president at Newedge,
"The issues are obviously about weather and the big question is how that will affect sugar availability," McDougall said. "You have a good monsoon which will help the Indian crop but there's dry weather in Brazil, which could shorten its cane crop. There are similar issues in Europe. We have floods in Pakistan. There are uncertainties on future availability."
"Demand is robust as many countries drew down their stocks because of high prices earlier this year," said McDougall.