I'll Name That Chart In One
It's certainly not London wheat that's for sure. This little baby is sugar, which hit it's highest in three years yesterday. This is New York sugar which peaked at 18.39 cents a pound yesterday, the highest since March 2006.
In London, white sugar closed at $474.90/tonne last night, the highest finish since July 2006, this morning it's currently at $475.90/tonne.
The reason for the rally? The lack of monsoon rains in northern India, the world's biggest consumer, leading the government there to meet yesterday to discuss an extension of the existing tax-free concessions on sugar imports.
World demand is outstripping supply by over six million tonnes at the moment, and India is set to potentially become the world's largest importer this year, having been a net exporter only a couple of years ago.
The reason for the switch? You guessed it, Indian farmers decided to get out of sugarcane production and get into the much more profitable grain sector!
