The March sugar futures closed at 24,20 cents/pound ($533 per ton) yesterday in New York. It is expected that the price on raw sugar may decline down to 19.75 cents per pound in 2012 due to excessive supply.
According to the Department of Commodity Trading of , the global supply of sugar may exceed the global demand by 9M tons in the 2011-2012 agricultural year. Given the sugar price is 25 cent per pound, sugarcane refineries will be producing sugar not ethanol. If the price declines by 20%, Brazilian sugar companies will prefer ethanol production to sugar.
Until then the global market of sugar will stay flattish. The price is currently fluctuating between the 24.88 - 22.73 range.
