Sugar Jumps While US Stockpiles Shrink to Record Low
US sugar stockpiles shrank to the lowest level in 37 years, making prices surge and forcing the government to increase import quotas.
The US Department of Agriculture estimated yield in Minnesota, the biggest beet growing state of America, will be 19 percent down from the previous year. Four more of the 10 biggest producing states may also have reduced output. The USDA forecast the US inventories of sugar will shrink more than 35 percent in the year through August 2012.
Retail prices for the sweetener have risen 9 percent since the beginning of this year. The rising prices caused the government to increase import quotas by 45 percent in 2011.
Spot price for sugar rose from 24.75 to 25.25 today as of 18:56 on ICE. Earlier settlement reached the daily maximum of 25.69.
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