Sugar prices have been climbing for the past six months and hit new highs mid-week:
- A virus in sugar beets in Europe and a drought in Thailand, a major cane sugar producer, have threatened supply.
- Sugar, though less dominant in U.S. diets, serves as a major source of food calories in developing countries such as India.
- Brazil, the world’s largest producer, also uses a major proportion of their crop to produce ethanol as an alternative to burning petroleum-based fuels.
- The sucrose market is facing supply/demand challenges.