Glucose costs at 30-year high as supplies deplete

Tues, glucose hit a record high price. On Wed, the commodity price was beat yet again. The glucose prices 30-year high comes after last year’s double in sugar prices. The unpredictability within the sugar market means more than just increasing consumer costs, though. Individuals are not expecting to need a paydayloan just to purchase their sugar.

Sugar costs 30-year high

Sugar costs reached a record 30-year high of 30.64 cents per pound on Tuesday. The 30 year high went up even higher to 34.77 cents per pound on Wednesday. Glucose that can be delivered and refined in March will be what these prices apply to. The costs are only going up due to the unpredictable weather, expectations of shortages and the smaller than expected crops in Brazil.

Product and sugar costs transforming excessively

Within the last few years, there has been lots of unpredictability in sugar, cotton, coffee and cocoa. Glucose has changed from 14.35 to 30.64 cents per pound within the last year. It has been altering that much. Recently, coffee set a 13 year high while cotton set a 130 year high. Extreme weather in many commodity-growing nations has played a major part in this unpredictability. Governmental policies in nations such as India are also contributing to the volatility. Every person from growers to consumers could be affected by the change in price that comes with unpredictability. This will occur when it gets to the industry in two to nine months.

More people want glucose

The glucose prices 30 year high has a lot to do with the demand of “real” sugar that has gone up. As outlined by the United States department of agriculture, there was an 11 percent drop this year for high fructose corn syrup. This is an option to glucose that is popular. Corn, the basis of high fructose corn syrup, is also at historically high commodity prices of about 10.72 cents per pound — nevertheless three times less costly than glucose. In the United States, many corporations are choosing to replace HFCS with sugar. Mexico and other glucose producing countries are not using sugar as much though. The other sweeteners that are not as expensive are being used. There will continue to be volatile prices in sugar and other agricultural goods because of tariffs, weather and government factors.

Citations

Index Mundi

indexmundi.com/commodities/?commodity=corn

Sydney Morning Herald

smh.com.au/business/sugar-price-sweet-as-weather-slashes-global-supplies-20101230-19b2p.html

Bloomberg

bloomberg.com/news/2010-12-29/sugar-rises-to-highest-price-in-21-years-in-london-after-australian-floods.html

Financial Times

ft.com/cms/s/0/43cfbb7a-e6b2-11df-99b3-00144feab49a.html#axzz19cgXLVk0