Sugar dazzled higher after an industry group said the Brazilian sugar harvest would have a significant output decline compared to last year. According to Unica, production could tumble as much as 1 million metrics in the current season compared with a year earlier. The sweet white granular substance has gained nearly 73 percent the past year.
Raw sugar for October delivery climbed 1.84 cents, or 6.6 percent, to settle at 29.52 cents a pound at 2 p.m. on ICE Futures U.S. in New York, the biggest gain since Oct. 7. Cane processing will total 535 million metric tons in the 2011-2012 season, or 40 million tons less than the previous estimate and below last year’s harvest of 557 million, based on a report from Czarnikow Sugar Futures Ltd.
Goldman Sachs and Morgan Stanley recently released upbeat reports with a positive outlook for sugar prices. It looks highly possible that sugar can reach at least $34.00 before the end of the year.
Check out this chart http://bit.ly/nV2LNo . For non-futures traders, exchange traded funds are available, (SGG) and (SGAR).