US Could Run Out Of Sugar
London white sugar futures surged to new all-time highs Thursday as it was revealed that US food giants including Kraft Foods, Hershey's and Mars had written to US Agriculture Secretary Tom Vilsack saying that the US could "virtually run out of sugar". They urged Vislack to increase the amount of tariff-free sugar they can import.
Meanwhile, monsoon rains continue to elude northern India's sugar cane producing regions, cutting production there by an estimated 44%, according to the Indian Sugar Mills Association. The rainy season, which ends next month, has so far produced 29% lower than normal rainfall June 1 to Aug. 11.
Output in Maharashtra, India's largest producing state, is forecast to halve to 4.6 MMT this season, from 9.1 MMT last year.
Meanwhile global demand is seen outstripping production by 5-7 MMT in the coming season.
London white sugar surged $19.90 to an all-time high of $589.90/tonne.
Meanwhile, monsoon rains continue to elude northern India's sugar cane producing regions, cutting production there by an estimated 44%, according to the Indian Sugar Mills Association. The rainy season, which ends next month, has so far produced 29% lower than normal rainfall June 1 to Aug. 11.
Output in Maharashtra, India's largest producing state, is forecast to halve to 4.6 MMT this season, from 9.1 MMT last year.
Meanwhile global demand is seen outstripping production by 5-7 MMT in the coming season.
London white sugar surged $19.90 to an all-time high of $589.90/tonne.
