Global sugar prices have been
gradually declining since early 2011. In particular, in February
2011, the price of sugar reached the high at 36,08 cents per pound while
in lat 2013 the price is down by 50% and is trading around 17-18 cents
per pound, Market Leader reports.
The oversupply of sugar is seen as the
key reason for the price weakness in the global sugar market. Still,
the tendency is likely to continue since the oversupply still exists.
The global market of sugar is
currently seeing an interesting tendency. 2,5 years ago, the price
started declining and reached the bottom at 16,7 cents per pound in July
2013. The reason is the same – the excessive supply of sugar worldwide.
At this point, the situation hasn't
changed dramatically. Multiple agencies are report that the surplus is
still present. The International Sugar Organization is predicting the
surplus around 4,5 million metric tons of sugar in the 2013-2014
marketing year.
The current bias is bearish. The price is trading around 16,92 cents per pound. The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of sugar:
