Prices of Sugar to Increase due to Deficit in Supply

According to one of the biggest names in sugar industry in the world, the prices of sugar will soar and reach new heights.

Alan Wood, who is Czarnikow Group International Director, while visiting Queensland told the cane growers that the supply of the sugar is still showing a downward trend.

Mr. Wood further said that due to adverse weather conditions in every major sugar growing countries across the world, the supply is in deficit. He also said that measures are being taken to increase the production, but there are some limitations.

He stated, “The interesting part of the whole equation is where is this production response going to come from?”

He mentioned that in Queensland the land is very much suitable for growing cane, but weather conditions not being favorable for the growth has lead to decrease in the sugar supply. The same weather condition in other parts of the world has also augmented the crisis.

For the past 150 years, Czarnikow has been in the sugar business and deals with almost five million tonnes of sugar. The Company is based in London, but its network is spread all over the world.

The March 2011 futures price for sugar rose 105 points at once to 27.64 US cents per pound.

source: topnews.co.uk