Author: Michael Ferrari, PhD
VP, Applied Technology & Research
ICE sugar futures showed a little strength last week after testing the lows in the upper 13 cent range; while conditions on the physical side of the market are improving, supply concerns are far from over. The International Sugar Organization’s recent estimate of a global shortfall of 8.5 mmt for the current crop year (ending in Sep 2010) reminds those in the trade that there is still a sizeable supply constraint that will provide market support until the balance is expected to reverse during the 2010/11 crop year.
Cyclone Laila: Despite the speculation that was common amongst analysts late last week, the net effect to the sugar crop in the southern subcontinent will turn out to be negligible; the focus on damages should be placed on human displacements.
