Could we have a white sugar price of $500 by 2011?

With current supply and demand figures we could perhaps see a white sugar price of $500 per MT by the end of the year.  If there is such a fall there would be a similar fall in raw sugar prices.  A white sugar price of $500 implies a $100 fall in prices per MT from current levels of over $600 per MT.

There are however a few assumptions to this.  Namely, that production is not impacted negatively in Brazil and India, the weather does not have any surprises in store for the market and that the line-up of vessels loading sugar at Brazilian ports does not continue to grow significantly beyond the 100 at present waiting to load.

The above does is not intended as investment advice and is solely for academic purposes.

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