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Low sugar stocks could push up price
01.06.2010 14:21 "Agro Perspectiva" (Kyiv) —
RAW sugar prices, on the skids for most of this year, may be headed for a recovery, Queensland Sugar chairman Alan Winney said.
Prices have halved since February, when the price briefly went above US30¢ a pound.
But Mr Winney, in Singapore for the Kingsman Asia Pacific Sugar Conference, told Bloomberg Television he thought prospects were improving.
World stocks remained low and would need to be rebuilt. As well, he said, demand for ethanol sourced from sugar was on the increase.
«It looks pretty positive,» Mr Winney said.
«World stocks are at 20-year-low levels. Were starting to see a few problems in some of the exporting countries Thailands civil unrest, South Africa with a little bit lower exports than normal and you are really starting to see a refocus on the ethanol picture.»
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Global sugar stockpiles would drop to 52.8 million tonnes, or 32 per cent of total consumption, in the year to September 30, the lowest ratio in 20 years, International Sugar Organization data showed.
Queensland Sugar ships more than 90 per cent of Australias raw sugar.
The raw sugar price dropped 4.9 per cent to US14.19¢ a pound in New York on Friday.
The price reached US30.4¢ on February 1, its highest since January 15, 1981.
While Mr Winney was positive on the price outlook, not all analysts agree.
A global sugar surplus is forecast in the year beginning October 1, after two years of deficits, with output forecast to rise in Brazil and India.
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