Sugar Hits New Highs

London white sugar has surged to fresh all-time highs this morning, reaching $566.50/tonne, the highest since trading began is US dollars in 1983.

In New York prices hit 22.44 cents/pound last night, a level not seen since 1981. Amazingly, we are still some way off New York's record all-time highs. Prices surged above 50 cents per pound in 1974-75 and 1980-81.

Sugar-broker Czarnikow said that global stocks at the end of the current 2008-09 will fall to 20 MMT, well below the current range of analysts estimates of 30-70 MMT.

Poor monsoon rains in India continues to hamper production there, with stocks dwindling ahead of the Diwali festival in mid-October. Meanwhile Egypt has lifted import duties to alleviate shortage fears in the run-up to Ramadan.