Thursday, October 7, 2010

Sugar - how sweet it isn't!

Sugar is in just about everything we eat and drink. Often we don’t even know that it's there, until it's missing... 

This simple commodity is slowly becoming more and more scarce. One example is Pakistan, where floods have affected the supply. It is claimed they are going to be nearly 100Mmt short of domestic supply this year. 

Already the price has risen drastically around the world. Brazil, the main producer and exporter of sugar, is already having to regulate sales. 

Companies who traditional buy sugar had better lock themselves in to long-term contracts while there are still supplies.

But sugar isn’t the only thing in short supply. Russia has stopped the export of wheat after a particularly poor harvest this year. Rice, a very popular commodity, is inconsistent. The whisper is that VietNam may limit exports and this will force the price up in Thailand. One country’s shortage is another country’s pot of gold.

Written by Haydn Leseberg, Trade Manager, Sutlet Group

For assistance in managing your trading activities, or to find the best deal for a given commodity, contact the Sutlet Group. The Sutlet Group is a leading provider of business services in Thailand and has developed excellent trading relationships worldwide.

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