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So this is what happens when sugar cane is used to make auto fuel.
Is anybody surprised?
Is anybody surprised?
Sugar May Advance 80% on Supply Crunch, Coleman Says
Aug. 14 (Bloomberg) -- Sugar may climb 80 percent to as high as 40 cents a pound on global supply shortages, said Singapore-based commodity hedge fund manager Michael Coleman.
“Sugar is caught in a perfect storm,” he said in a Bloomberg Television interview. There is “a big hole” in world supply and no obvious solution in the next six to nine months...
...The sweetener has surged 88 percent this year, reaching a 28-year high, as India, the biggest consumer, had its driest June in 83 years and parts of Brazil, the largest grower, were drenched by rainfall four times more than normal, too wet to harvest. World demand will exceed output by as much as 5 million metric tons in the year ending September 2010, according to the International Sugar Organization...
...“The world has to depend on Brazil,” Coleman said. There was a question over how much of the country’s cane crop can actually be turned into sugar, he said, as millers have invested heavily in ethanol and “somewhat neglected” the capacity for making sugar.
“Brazil seems to be fairly maxed out in the short to medium term” with “about 43 percent of its capacity able to be delivered to the market as sugar”...
Aug. 14 (Bloomberg) -- Sugar may climb 80 percent to as high as 40 cents a pound on global supply shortages, said Singapore-based commodity hedge fund manager Michael Coleman.
“Sugar is caught in a perfect storm,” he said in a Bloomberg Television interview. There is “a big hole” in world supply and no obvious solution in the next six to nine months...
...The sweetener has surged 88 percent this year, reaching a 28-year high, as India, the biggest consumer, had its driest June in 83 years and parts of Brazil, the largest grower, were drenched by rainfall four times more than normal, too wet to harvest. World demand will exceed output by as much as 5 million metric tons in the year ending September 2010, according to the International Sugar Organization...
...“The world has to depend on Brazil,” Coleman said. There was a question over how much of the country’s cane crop can actually be turned into sugar, he said, as millers have invested heavily in ethanol and “somewhat neglected” the capacity for making sugar.
“Brazil seems to be fairly maxed out in the short to medium term” with “about 43 percent of its capacity able to be delivered to the market as sugar”...
One does not notice the recession until they dry out a bit.
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