Sugar reaches highest price since 1981

**Red_Lizard2** · 08-10-09, 03:08 PM

See the governments thinking out side of the box: "If we inflate sugar prices, it will be like a tax but no-one will think it is!"

Brilliant! (kidding aside, just couldn't think of anything decent to say)

From the sounds of the article, we need to invade India, take control of the sugar market and turn it into an efficent, well-run sugar producing machine

http://news.bbc.co.uk/2/hi/business/8193390.stm

The price of raw sugar has increased to its highest level since 1981, as supply concerns grow.

Raw sugar futures added 3% on Monday, to finish the day at 22 cents a pound.

"The main problem is a deficit in sugar supplies," said Nick Penney, a trader with Sucden Financial, a firm that focuses on sugar trading.

Growing demand in Brazil for sugar to be turned into ethanol, coupled with a sharp fall in Indian production, have both prompted worries, he explained.

Sugar production in India for 2008-09 fell 45% year-on-year, according to a report by Sucden.

And a "drastic fall" is expected for the coming Indian crop, it said.

India had less rain in the monsoon season and it was also uneven, damaging a number of agricultural crops.

There are concerns that the pending sugar crop, which will be ready around November, will be inadequate.

"This [sugar market] train is running express," said Alex Oliveira, senior sugar analyst for Newedge USA in New York.

"It's feeding on itself."

**Consultant** · 08-10-09, 03:45 PM

GTFO! Our Governent would NEVER do anything like that......artificially inflating prices by reducing supply and surplus. PFFT!

Be honest - how many of you knew about the Agricultural Adjustment Act before today.

**Red_Lizard2** · 08-10-09, 03:56 PM

Originally Posted by Consultant

GTFO! Our Governent would NEVER do anything like that......artificially inflating prices by reducing supply and surplus. PFFT!

Be honest - how many of you knew about the Agricultural Adjustment Act before today.

Maybe not the same act (not sure), but we talked about how the government basically buys produce from farmers to keep the price of the products above a certain cost (in a macroecon class)