Supplies of glucose decreasing while costs hit 30 year high

Glucose costs are making record gains this year. Tues, glucose costs hit a record high, which was beat on Wednesday. Last year, glucose product costs doubled. This year, they have continued to rise. The volatility in the sugar industry means more than just increasing consumer prices, though. People aren’t expecting to need a payday cash loan just to buy their sugar.

30-year high on sugar prices

A 30 year high was reached Tues with glucose costs. They were at 30.64 cents per pound. Then Wed, the sugar prices 30-year high jumped again to 34.77 cents per pound. Glucose that could be delivered and refined in March could be what these costs apply to. The costs are only going up due to the unpredictable weather, expectations of shortages and the smaller than expected crops in Brazil.

Volatility in product and sugar costs

Sugar, cotton, coffee and cocoa are all commodities that have been altering a lot. This has been the case for a few years now. Sugar has changed from 14.35 to 30.64 cents per pound in the last year. It has been altering that much. There were highs set by cotton and coffee recently also. Cotton was a 130 year high while the high for coffee was 12 year. The unpredictability that is going is mostly because of all the extreme weather that has been showing in nations. The volatility also has to do with governments in countries like India. This unpredictability impacts every person from the growers who sell their crops to the final consumer price paid, 2 to nine months later, when the product finally reaches the industry.

Higher glucose demand

The increased interest in “real” sugar has been playing a part in the sugar costs 30-year high. As outlined by the United States department of agriculture, there was an 11 percent drop this year for high fructose corn syrup. This is an alternative to glucose that is popular. The basis of high fructose corn syrup, corn, is at a high too now although it is three times less expensive than glucose. It is at 10.72 cents per pound right now. In the United States, many businesses are choosing to replace HFCS with glucose. Mexico and other sugar producing countries are not using sugar as much though. The other sweeteners that are not as expensive are being used. Glucose and other agriculture products will likely continue to be volatile with increasing and decreasing. The weather, government factors and tariffs will not be stopping anytime soon.

Citations

Index Mundi

indexmundi.com/commodities/?commodity=corn

Sydney Morning Herald

smh.com.au/business/sugar-price-sweet-as-weather-slashes-global-supplies-20101230-19b2p.html

Bloomberg

bloomberg.com/news/2010-12-29/sugar-rises-to-highest-price-in-21-years-in-london-after-australian-floods.html

Financial Times

ft.com/cms/s/0/43cfbb7a-e6b2-11df-99b3-00144feab49a.html#axzz19cgXLVk0