Europe expects supply shortages

Thursday 27 January 2011 – Europe facing expected sugar supply shortages announced that it would permit additional imports over and above set quotas.  The news resulted in a rally in sugar prices with March white sugar futures gaining $25 or 3.15% to close at $824.50 and March raw sugar futures up 1.05 cents to close at 34.18 cents.

Russia also announced that it may decrease import duties on raw sugar which also provided prices with support.

The gains were corrected somewhat on Friday 28th January 2011 with March white futures down $10.

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2 responses to “Europe expects supply shortages

  1. Shiladitya Brahma

    When is India going to allow export under OGL. We are again missing a golden chance by delaying the process.

    • An answer to your question would address the below from my last post. Indian exports and the uncertainty surrounding them are partly responsible for tight world supply.

      ‘Sugar futures are down following rallies to near 30 year highs last week. However, supply is tight and provides support to prices despite raw sugar futures correcting by 4%. The Cyclone and uncertainty over the size of Indian exports continue to ensure supply tightness.’

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