Sugar high

摘要

On Aug. 7, sugar futures reached a 28-year high, just under 20￠ a pound, levels not seen since 1981. Analysts say a monsoon in India and a poor sugar harvest in Brazil, as well as underlying bullish fundamentals, were the reasons for the spike.rn"The monsoon [in India] is really driving the market. The Indians normally produce enough sugar for their own consumption and for exports and they've become big importers this year," says Jack Scoville, vice president at Price Futures Group, adding, "People thought there would be more sugar in Brazil than there seems to be, so that tightens up the situation even more. That's creating the up move and I expect it to continue." He predicts a level of 23.50c, a pound by September.