Sugar rally may not last

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.

  • Financial Times 09/06/99 page 38

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