The sugar price has further to fall after a steep market spike in March, a Sucden analyst said this week – but then it will recover.
Sugar has rallied strongly in 2009 and 2010, pushing the price per pound from $0.12 up to 30¢ in March 2010, its highest for 30 years.
Now sugar is trading between 17¢ and 18¢ a pound. While this year’s spike has been the sharpest for three decades, other price spikes were higher. In the early 1980s, the price reached 45¢, and in the mid-1970s, it peaked at around 65¢.
Still, commented Pierre-Henri Dietz, market analyst at the sugar trading house Sucden Paris, the March rally “also contained an element of overreaction from the market”.
Speaking at the conference of the World Association of Beet and Cane Growers in Cambridge on Monday, Dietz argued...