Consensus from analysts (e.g. Rabobank, Fo Licht, Macquarie, Commonwealth Bank of Australia) remain that with the world awash with sugar, and stocks amply replenished from four years of surplus, this will continue to generate negative pressure on prices for the time being. For the foreseeable future, it is unlikely that the global sugar price will hover beyond 12-13 cents/lb. The market over the past few months has been currency-driven with strong US dollar against weakening Brazilian real driving sugar producers to maintain with the commodity, rather than switching to ethanol, as prices remain relatively attractive. But as Morgan Stanley has… Login to continue

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