Hi All
 
I recently visited the South African Sugar Association and got some
figures on the world sugar trends.
 
Apparently we as they fourth largest producer are going to produce
our biggest crop ever, meaning that a lot is going to be exported.
Likewise, in the face of ever cheaper petroleum products Brazilians
are buying petrol/gasoline powered cars and hence a lot of brazilian
sugar that used to be used for ethanol production to run ethanol
powered cars is no longer needed and will be dumped on the open
market. Brazil is the worlds largest producer. I do not know how the
sugar beet yield will be from the US and europe this year. Apparently
China needs to import a bit.
 
Anyhow, the result it that the sugar price will be very low.
Apparently the SA quota is going to the US at R2600 ($421 at todays
currency closing) a metric ton which they say is 20c/pound (I think
thats SA censt so in dollar terms it's about 3.5 cents a pound).
Given that our currency is depreciating fast this means that sugar is
getting a lot cheaper for US buyers of SA sugar, and other countries
with similar currency disasters such as India and Indonesia which are
also big sugar producers. And I geuss we just have to see how
austalia stands up to all of this as they are a huge sugar producer
as well.
 
Apparently NAFTA is placing increasing pressure on the US to increase
the amount of sugar brought up from mexico as well which may help to
bring down the price of HFCS as it will be a case of compete or die
for the big midwest HFCS plants (who are diversifying into the
byproducts market so fast they probably coudn't care anyhow!!)
 
Anyhow, for those contemplating winter feeding bills, hope this is
good news.
 
Keep well
 
Garth
 
Garth Cambray           Camdini Apiaries
Grahamstown             Apis mellifera capensis
Eastern Cape Prov.
South Africa
 
Time = Honey
 
After careful consideration, I have decided that if I am ever a V.I.P
the I. may not stand for important.
(rather influential, ignorant, idiotic, intelectual, illadvised etc)