What hope for sugar prices?

The world price of sugar has fallen to a six-year low. While recent weakness can be attributed to the fall in the value of the Brazilian real and a decision by India to re-introduce export subsidies, the fundamental problem facing the market is a global abundance of sugar. We forecast the price of sugar at end-year to be around 13.5 US cents per pound, up slightly from 12.8 US cents today.

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