Sugar shapes up as new fuel commodity

Bad times just a memory: Sugar traded under US4c in 1998; in
early 2004, the spot sugar contract was trading around US5.7c. At the
start of 2005, it fetched a little over US9c, while on January 3 this
year, it closed at US14.18c. Earlier this month, sugar touched US19.65c
a pound on the New York Board of Trade, the highest price for a
contract closest to expiry since April 1981.

US40c/lb possible by 2010: Ethanol demand may drive sugar prices
as high as US40c a pound by 2010, Roland Jansen, who started the 2.5
billion Swiss franc ($A2.6 billion) fund-management arm at
Liechtenstein’s state bank, said on December 9.

The Australian Financial Review, 13/2/2006, p. 23

Source: Erisk – www.erisk.net 

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