By Shruti Date Singh
Feb. 25 (Bloomberg) -- Sugar futures rose to a one-week high on signs of a widening production gap and speculation that higher oil prices will encourage cane processors to make more ethanol rather than sweetener.
Global sugar demand will exceed output by 4.27 million metric tons in the year ending Sept. 30, up from a November forecast of 3.6 million, the London-based International Sugar Organization said yesterday. India may import 2 million tons this year as the country’s production falls 31 percent to 19.9 million tons, ISO said. Crude oil rose as much as 7.1 percent today.
“Any commodity that has a potential deficit is going to outperform other commodities,” said Adam Klopfenstein, a senior market strategist for MF Global unit Lind-Waldock in Chicago. “We have crude oil trading higher. It’s an outside proxy for the sugar market on the alternative energy play.” more...
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