Sugar is attempting to break out of its prolonged bear market. Raw sugar futures stood recently at 18.28 cents per pound, up from a low of 14.7 cents early this year. Even so, the current price is only half of what it was in early 2011.
Global production of the sweetener is set to fall short of consumption in 2015, snapping four consecutive years of oversupply, largely due to falling output in top exporter Brazil.
The supply concerns are driving sugar prices higher. Raw-sugar futures rose 4.1% last week, the biggest weekly percentage gain in almost two months. The July contract, which is the most actively traded, ended the week at 17.91 cents a pound on the ICE Futures U.S. exchange.
Sugar prices expected to increase on El Nino and short supply
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