Contrary trends in world sugar prices continue. On July 2nd 2007 Bloomberg reported the most severe fall in New York sugar prices in four weeks following a record Brazilian cane harvest. However by mid-July it was reporting the highest price rise on the New York sugar market since March 2007 on signs that Brazil was switching cane to more ethanol production. It reported that sugar for October delivery rose 3.5 % to 10.04 cents a pound and that sugar prices had ‘jumped 18% from a 23-month low of 8.52 cents on June 5th’. However this price recovery may not hold, with the ISO predicting a global surplus of 9.2 million tonnes by the end of September. Similar contradictory reports were carried in the July 2007 SKIL review.
These contrary trends highlight the increased responsiveness of world sugar prices to market signals.