http://www.mb.com.ph/articles/218343/sugar-prices-soar-near-30year-high

NEW YORK/LONDON, Aug. 31 (Reuters) – The price of raw sugar soared to its
highest level in almost 30 years on Friday, driven by investors worried
about tight supplies and stout global demand for the sweetener.

A prime catalyst for the relentless rally in sugar is the worst monsoon in
40 years in No. 1 consumer India, forcing the teeming South Asian nation to
book large imports of sugar ahead of its annual festival season this year.

New York's October raw sugar contract jumped 1.03 cents, a rise of more than
4.5 percent on the day, to end at 23.52 cents per lb, the loftiest finish
for the sweetener since early in 1981.

London's October white sugar contract climbed $14.80, up 2.65 percent, to
conclude at $573.10 per ton. ''People are talking 30 cents and we're not
that far away,'' Jack Scoville, vice president and senior analyst for
brokers The Price Futures Group, said.

Alex Oliveira, senior sugar analyst for Newedge USA, said the momentum is
definitely toward ever higher ground and a target of 30 cents is within
sight.

Lars Steffensen, managing director of UK-based commodities fund Ebullio
Capital Management, said investment funds have poured wholesale into sectors
like sugar. ''With all the money that's been thrown at the commodities
sector at the moment some of these prices are skewed to ridiculous degrees
and sugar is one of them,'' he explained.

Sugar has trumped jitters over a global economic recovery because several
countries may need to import the sweetener over the next few months. India
is leading the pack on demand.

The country is going to harvest a poor cane crop because of a monsoon that
some weather and climate forecasters believed was disrupted by the formation
of an El Niño weather anomaly in the equatorial Pacific Ocean.

Indian 2009/10 sugar production is seen dropping to 14 million to 15 million
tons, while consumption stands at over 22 million tons.

Some analysts say that initial estimates India would import 2.5 million to
3.0 million tons of sugar in the 2009/10 season could probably balloon to
5.0 million tons, or more.

-- 
Juanse Barros J.
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