The sweetener hit its highest prices in more than a decade this February, ahead of planting season and in time to encourage the planting of a record crop. Global production is expected to surpass demand by anywhere from 4.2 million tons to 8.4 million tons, according to reports from various market analysts.
With such a surplus, a Bloomberg survey found nine out of 13 traders expecting a decline in sugar futures. The last such negative outlook preceded a 7.6 percent decline in the soft commodity.
"If you are a strategic buyer and not a speculator, you’re going to wait for the market to go down because everyone is expecting a surplus," Renier Swanepoel, an analyst at UBS, told Bloomberg. "The only question is how big."
Yet, Bloomberg notes the market in Europe looks quite different, with prices reaching a two-year high because of production shortfalls in the region coupled with import limits.
As of 10:44 a.m. Friday sugar rose 0.26 percent to 26.87 cents per pound, a 0.07 cent rise.
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