Rise in Sugar Price Predicted

Estimates are that the future prices of sugarcane will increase by up to 13% due to drought in Brazil, which in 2013 accounted for 28% of global production of the grain.

Monday, May 26, 2014

A shortfall in global sugar production and consequently higher grain prices is what is seen in the medium term in the global agricultural market. The effects of climate on sugarcane crops in Brazil have resulted in a decline in the production of the world's largest producer.

"COPERSUCAR SA, an operator, predicts future prices of sugarcane will climb by 13% by the end of the year up to 20 cents a pound ... In the 2014-2015 season, which begins on October 1, demand could exceed harvested amounts by three million tonnes, according COPERSUCAR based in Sao Paulo. "

"Global demand will reach a record 167.6 million tonnes during the year ending September 30, extending two decades of increase which saw consumption grow 48% according to data from the U.S. Department of Agriculture."

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