While there is a general consensus among the industry analysts that the outlook for sugar prices is bearish, analysts at Macquarie Commodities Research point out that there several mitigating factors that may signal a rise in prices post second quarter in 2013 after falling to 17.5 c/lb. Macquarie analysts highlight six possible scenarios that are likely to dent the continued bearish outlook. While the output of cane will continue to increase, diversion to ethanol production is likely to increase to as much as 54% in 2013/14 compared with 50% in 2012/13. This is to address higher demand arising from “1)… Login to continue

Login or sign up