How far will sugar crash?

Market Pulse for May 21

Sugar prices are in a free fall now at prices we have not seen since July 2010. Last week July 2013 Sugar opened at 17.43 and closed the week at 16.89. A major reason for last week’s drop was that it was reported the output nearly tripled in April at the main growing area of Brazil, who happens to be the world’s biggest producer as well as the world’s third largest consumer.

Speaking of consumers, here are the worlds largest based on the average consumed in 2009-2012 (Source: American Sugar Alliance).

(Thousand Metric Tons/Year)

  1. India  24,000
  2. China 14,600
  3. Brazil 11,733
  4. USA   10,171
  5. Russia 5,649
  6. Indonesia  5,050
  7. Mexico 4,341
  8. Pakistan 4,317
  9. Egypt 2,867

What is amazing here is the in the list above the combined usage of the top four is triple that of the next five. And look at the drop from number four to number five.

Proceed to Page 2 for the latest COT Data...

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