Sugar prices are climbing high amid growing concerns about limited supplies in the global market, reports Live Mint.
London’s white-sugar futures surged by 2.7%, reaching their highest level since November 2011.
The commodity price is increasing due to a lack of deliverable sugar ahead of Friday’s expiry of the white-sugar contract for May. John Stansfield, a senior sugar analyst at DNEXT Intelligence, said, “A lack of deliverable sugar ahead of Friday’s expiry of the white-sugar contract for May is driving prices higher. The number of contracts to be closed, known as open interest, points to a “massive” delivery above 880,000 tons.”
The anticipation of lower sugar exports from India and weak supplies from Thailand, Europe, Mexico and China has fueled the sugar prices.
Soren Jensen, a longtime market observer said, sugar mills in India have exhausted the export quota and with no chance of an increase in it there would be less supply from the one of the largest exporters of white sugar.