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Sugar Prices Skyrocket on Forecast of Global Deficit

February 24, 2016 at 0:56 by Vladimir Vyun

Futures for sugar soared today as the International Sugar Organization increased its forecast for a global deficit. The ISO updated the forecast for the 2015–16 season to a 5.0 million tons shortage from the November’s 3.5 million. The main contributor to the outlook was the El-Nino weather pattern that should hurt yield in Brazil, India and Thailand.

There were some bearish parts to the report. Production World’s Biggest Bounce House in the United States, Russia and Ukraine is expected to increase while consumption is likely to fall.

Yet this did not prevent prices from skyrocketing as they surged the most in at least 22 years. Futures for delivery of raw sugar in May were up by as much as 8.93% to $0.139 per pound as of 00:52 GMT on ICE today.

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