The sweetener might strike 29 cents per pound according to a Bloomberg survey of exporters, importers and traders. Higher priced sugar could be in danger of curbing inflation for policy makers and central banks as they keep an eye on food prices while noting the 2008 peak.
"The stocks-to-use is quite tight, which is keeping prices high," director of food and agribusiness research and advisory Adam Tomlinson of Rabobank International told Bloomberg. "That's why you got countries like China managing their reserves, adding 1 million tons to their imports."
At 9:49 a.m. on Tuesday, sugar futures increased 0.51 percent, a 0.0014 cent rise to 27.62 cents per pound.
Peter Baron, executive director of the International Sugar Organization, told Bloomberg that a surplus of roughly 4 million metric tons of the sweetener probably will not be a sufficient amount to permit importing nations like China and Indonesia to not raise prices.
CommodityOnline reports sugar output for this season in India will total 24.2 million tons, according to the Indian Sugar Mills Association. That figure is significantly larger than the 19 million tons produced last year.
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