Sugar prices fall as dollar gains ground

NEW YORK - Sugar prices dipped Tuesday as the dollar gained ground against the euro and the British pound.

October sugar fell .05 cent to settle at 12.71 cents per pound on the ICE Futures U.S. exchange, after hitting a high of 12.84 cents earlier in the session.

The dollar advanced Tuesday as crude oil futures dropped on reports that the Gulf Coast and its oil facilities avoided massive damage from Hurricane Gustav, which struck southern Louisiana at much weaker speeds than expected. Damage from the storm - while still significant - appeared to be much less than that caused by Hurricane Katrina three years ago.

Louisiana is home to a robust sugar industry that includes more than 600 growers, 11 processing mills and more than $500 million in annual crop value, according to the American Sugar Cane League.

source:forbes