Sugar prices are nearing a three-year low, melting under 11 cents per pound on Friday. The sweetener is suffering from a record-large global glut and rising production.
Longer-term, the market will deal with two major opposing trends. Rising incomes in developing nations are giving consumers more money to spend on discretionary food purchases, like sweets and meats. However, rising warnings from the scientific community about the dangers of sugar are dampening demand, resulting in a slow growth in global consumption each year.
Despite the bearish outlook, some bargain hunters are getting ready to buy sugar on hopes that the market could double, as it did the last two times prices fell to 10 cents per pound.