Sugar Prices Hit 30-Year High

LONDONSugar prices have hit a 30-year high, reports Bloomberg.com, in the wake of analysts predictions that floods in Australia will reduce that countrys output of the crop. Australia is the worlds third-largest exporter of sugar, followed by Brazil and Thailand.

Weeks of rain in Queensland have put many communities at risk of flooding, and analysts have suggested that the next sugar harvest might be damaged as a result.

Prices for raw sugar intended for March delivery rose 0.22 cents (0.6%) to 34.61 cents a pound as of 10:17 A.M. on ICE Futures U.S. in New York. Earlier in the day, raw sugar had reached 34.77 cents, the highest price since Nov. 1980. Refined-sugar futures intended for March delivery rose $11.10 (1.4%) to $831.50 a metric ton on NYSE Liffe in London. Earlier in the day, the price had reached $835.80, the highest price since 1989.

Analysts are noting that these circumstances have currently created a highly bullish situation for sugar.