09 June 1999
Sugar rally may not last
MARKET analysts remain pessimistic about global sugar futures despite a recent rally in prices.
Benchmark raw sugar has risen to 5.45 cents a pound on New Yorks Coffee, Sugar and Cocoa Exchange, after reaching 13-year lows of around 4 cents in May.
White sugar has climbed to $190 a tonne from lows of $160 a tonne on the London International Financial Futures and Options Exchange.
The rise is partly due to Russia which is buying strongly ahead of a 1 August cut-off date which will see an increase in tariffs to protect domestic sugar producers.
But several analysts say there is a real prospect of lower prices to come if forecasts of good harvests in Europe and Brazil are fulfilled.