Asia crisis hits sugar market

By FWi staff

GLOBAL sugar prices are set to fall during the coming nine months, dashing hopes of an increase in returns for UK growers from the 1998/99 crop.

The world sugar price is predicted to plummet by 6.6% throughout 1998, according to the latest report from the Economist Intelligence Unit. Previous forecasts had said prices would rise by 8.8%.

The latest World Commodity Forecast, released by the EIU yesterday, says the bleaker outlook can largely be attributed a market weakened by a drop in demand.

The global market will remain in surplus during the year because the economic crisis in Asia has meant reduced consumption in the Pacific region, the report says.

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