Supplies of glucose falling while costs hit 30 year high

Tues, sugar hit a record high price. On Wed, the product price was beat yet again. The sugar prices 30-year high comes after last year’s double in sugar prices. The expansion of glucose costs means much more, however. Not only do customers pay more, however businesses pay more. People are not expecting to need a payday advance just to buy their sugar. Post resource – Sugar prices at 30-year high as supplies deplete by MoneyBlogNewz.

Sugar costs up to high of 30-years

Sugar prices reached a record 30-year high of 30.64 cents per pound on Tues. Then Wed, the sugar prices 30-year high jumped again to 34.77 cents per pound. There is specific glucose the price will apply to. It could be March glucose delivered and refined. The prices are only going up because of the unpredictable weather, expectations of shortages and the smaller than expected crops in Brazil.

A lot of change in product and sugar prices

Sugar, cotton, coffee and cocoa are all commodities that have been transforming a lot. This has been the case for a few years now. In the last year, glucose has been as low as 14.35 cents per pound and as high as 30.64 cents per pound. Cotton futures have set 130-year highs, and coffee recently set a 13-year price high. There has been a lot of severe weather in other nations. This is what has brought on lots of the volatility being seen. Governmental policies in countries for instance India are also contributing to the unpredictability. This volatility impacts everyone from the growers who sell their crops to the final consumer price paid, 2 to nine months later, when the product finally reaches the industry.

Elevated interest in sugar

There has been more of a “real” sugar need recently. This is part of why the sugar costs 30 year high are happening. There has been an 11 percent drop for high fructose corn syrup this year which is an option to glucose according to the United States department of agriculture. There is a high of 10.72 cents for corn right now, although it’s three times less expensive than glucose, as it is the basis of high fructose corn syrup. Lots of corporations within the United States are using glucose. That means HFCS is being replaced. The less expensive sweeteners are being used by the food manufacturing operations in Mexico. There will continue to be volatile prices in glucose and other agricultural goods due to tariffs, weather and government factors.

Citations

Index Mundi

indexmundi.com/commodities/?commodity=corn

Sydney Morning Herald

smh.com.au/business/sugar-price-sweet-as-weather-slashes-global-supplies-20101230-19b2p.html

Bloomberg

bloomberg.com/news/2010-12-29/sugar-rises-to-highest-price-in-21-years-in-london-after-australian-floods.html

Financial Times

ft.com/cms/s/0/43cfbb7a-e6b2-11df-99b3-00144feab49a.html#axzz19cgXLVk0