Overproduction Redux

[DMS <dmschanoes@xxxxxxxxxxxxx>]

>From today's WSJ column on Futures:

"Sugar Falls to Nine-Month Lows; Brazil's Big Haul Hurts Market"
World raw sugar futures collapsed to nine-month lows on the
Coffee, Sugar, and Cocoa Exchange.

A giant cane crop in Brazil is weighing on the market, while
demand has been tepid as importers wait for prices to drop.
The benchmark October contract settled 0.16 cent lower at
5.97 cents a pound.....

Growers in Brazil's top Center-South region have cut about
60% of the 2003-2004 crop, pegged at a record 287.98 million
metric tons by the Sao Paulo Sugarcane Industry Union.  In the
Northeast, where harvesting has just begun, the crop is put
at 52.3 million tons, up slightly from last year....

"Traders thought that when we got down to 6.20 cents,
physical business would emerge.  But there was little
interest from importers there, and now we're below
6.00 cents."




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