Sweet Future Expected for Sugar ETN — Seeking Alpha

Sugar for March delivery closed at 28.45 cents per pound on Monday — a little off its above-30-cent peak struck last month, but still double its May 2010 low.

And it looks like sugar may have higher to climb.

Global supplies of sugar are projected to lag worldwide demand this year for the third year running. According to a new report by Czarnikow Group, a London-based sugar and biofuel broker, the supply/demand deficit could run as high as 2.8 million metric tons from September 2010 to September 2011.

Of course, when you consider that total supply for 2010/11 is expected to rise to 168.4 million tons from last year’s 157.4 million, that deficit doesn’t seem like a huge gap. And generally, if sugar becomes too expensive to use, end-consumers can just switch to cheaper sweeteners, like corn-based syrups.

Still, one can make the argument that sugar should be higher, especially considering that growing consumption is expected in emerging markets like China, where we’ve yet to hit the limit of their commodity appetite. Plus, over the past few years, we’ve seen drawdowns in world inventories of the sweet stuff, a fact that helped boost prices up to ever-higher highs in 2007/08 and 2008/09.

The supply shortfall springs from poor growing weather we saw earlier this year. Remember that Brazilian bumper crop we talked about back in August? Yeah, not so much. Brazil, the world’s largest producer of sugar, saw sugar cane production declines from a hotter summer than usual, while similar drought conditions stunted Russian beet production and South African cane yields. Meanwhile, in Indonesia and Australia, the sugar cane harvest withered under a deluge of super-wet weather.

Hawaii and Related Agriculture Daily Charts for the week ending 06-04-2010

Hawaii and Related Agriculture Daily Charts for the week ending 06-04-2010
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The annual charts have bee updated. CLICK HERE to view.

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Maui Land and Pineapple (MLP) 06-04-2010
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Whole Food Markets (WFMI) 06-04-2010
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ML Macadamia Orchards LP (NNUT) 06-04-2010
ML Macadamia Orchards LP (NNUT)

Alexander and Baldwin (ALEX) 06-04-2010
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Monsanto (MON) 06-04-2010
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Syngenta (SYT) 06-04-2010
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DUPONT E I DE NEM (DD) 06-04-2010
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Hawaii and Related Agriculture Daily Charts for the week ending 05-28-2010

Hawaii and Related Agriculture Daily Charts for the week ending 05-28-2010
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The annual charts have bee updated. CLICK HERE to view.

The 360 day comparative price, line and histogram charts, page has been updated also. CLICK HERE to view.

Maui Land and Pineapple (MLP) 05-28-2010
Maui Land and Pineapple (MLP)

Whole Food Markets (WFMI) 05-28-2010
Whole Food Markets (WFMI)

ML Macadamia Orchards LP (NNUT) 05-28-2010
ML Macadamia Orchards LP (NNUT)

Alexander and Baldwin (ALEX) 05-28-2010
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Monsanto (MON) 05-28-2010
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Syngenta (SYT) 05-28-2010
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DUPONT E I DE NEM (DD) 05-28-2010
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Hawaii and Related Agriculture Daily Charts for the week ending 05-21-2010

Hawaii and Related Agriculture Daily Charts for the week ending 05-21-2010
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The annual charts have bee updated. CLICK HERE to view.

The 360 day comparative price, line and histogram charts, page has been updated also. CLICK HERE to view.

Maui Land and Pineapple (MLP) 05-21-2010
Maui Land and Pineapple (MLP)

Whole Food Markets (WFMI) 05-21-2010
Whole Food Markets (WFMI)

ML Macadamia Orchards LP (NNUT) 05-21-2010
ML Macadamia Orchards LP (NNUT)

Alexander and Baldwin (ALEX) 05-21-2010
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Monsanto (MON) 05-21-2010
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Syngenta (SYT) 05-21-2010
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DUPONT E I DE NEM (DD) 05-21-2010
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Hawaii and Related Agriculture Daily Charts for the week ending 05-14-2010

Hawaii and Related Agriculture Daily Charts for the week ending 05-14-2010
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The annual charts have bee updated. CLICK HERE to view.

The 360 day comparative price, line and histogram charts, page has been updated also. CLICK HERE to view.

Maui Land and Pineapple (MLP) 05-14-2010
Maui Land and Pineapple (MLP)

Whole Food Markets (WFMI) 05-14-2010
Whole Food Markets (WFMI)

Calavo Growers (CVGW) 05-14-2010
Calavo Growers (CVGW)

Alexander and Baldwin (ALEX) 05-14-2010
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Monsanto (MON) 05-14-2010
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Syngenta (SYT) 05-14-2010
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DUPONT E I DE NEM (DD) 05-14-2010
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Hawaii and Related Agriculture Daily Charts for the week ending 05-07-2010

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The annual charts have bee updated. CLICK HERE to view.

The 360 day comparative price, line and histogram charts, page has been updated also. CLICK HERE to view.

Maui Land and Pineapple (MLP) 05-07-2010
Maui Land and Pineapple (MLP)

Whole Food Markets (WFMI) 05-07-2010
Whole Food Markets (WFMI)

Calavo Growers (CVGW) 05-07-2010
Calavo Growers (CVGW)

Alexander and Baldwin (ALEX) 05-07-2010
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Monsanto (MON) 05-07-2010
Monsanto (MON)

Syngenta (SYT) 05-07-2010
Syngenta (SYT)

DUPONT E I DE NEM (DD) 05-07-2010
Syngenta (SYT)