Sugar price decreases in local market

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Sugar price decreases in local market

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The decrease in price is due to surge in surplus in world markets.

12 May,2011 11:14 pm

As global sugar prices need to drop below the domestic price of ethanol in Brazil, top producer of the sweetener, to curb output at a time when the surplus on world markets is expected to surge, the Kingsman consultancy said on Thursday. The prices have been in a downward trend since February, but in a wide channel with very volatile daily movements. We dont see any reason why that should change, Kingsman said.Sugar futures fell on Wednesday, weighed down by weaker commodity markets, a strong dollar and the sting of news that Chinas economy appears to be cooling. New Yorks July raw sugar contract dropped 0.93 cent or by 4 percent to settle at 20.94 cents per lb. August white sugar futures in London fell $18.20 to close at $594.40 a tonne.