Changes in sugar futures price affects everyone as sugar is the world’s official sweetener.
We put it in tea, coffee and other drinks. It is one of our favorite things to have as kids and even as adults, every once in a while, we just cannot seem to get enough of it. Sugar is also used in medicines especially in the Eastern part of the world.
It can be used to cure minor ailments like hiccups and small stomach problems, and to preserve foods by making them freeze faster. It has also been used to sweeten medications and to help raise the blood sugar in the human body since sugar does not occur naturally in us.
The demand for it is all over the world since it is a necessary part of the daily diet and is required for normal functioning of the human body.
Daily Sugar Prices (ICE)
Sugar comes from sugarcane which grows in moist and hot climate areas, in Central America, South America, and areas in the Middle Eastern parts of the world. The largest sugar-producing country is Brazil, followed by India, China, Thailand and Pakistan. The sugar supply can depend on the demand for it.
If demand overtakes supply on the sugar market then there will be a shortage of the supply to go around.
Demand Affects Sugar Futures Price
The sweetener is mainly consumed and purchased by the food industry and dessert corporations. It can also be used by medical and scientific companies as a necessary ingredient in chemicals and such things. Raw sugar itself without being refined or processed is also something in demand.
Sugar futures price can rise or fall depending on the supply and demand factors in the market. Things like natural disaster or hunger can cause the prices in the sweetener to rise.
If there are too many countries producing at once and there is more supply than the demand in the market, sugar price will fall. Other factors that can change sugar price are: the weather, the amount of money that the economy has to market a sugar related product and the amount of money consumers have to buy the product.
Sugar Futures Price History
Sugar started out growing in India very long time ago. It was not until about 350 AD when granules are being produced from the sugarcane, replacing the original chewing method that was done by the founders in India. The great emperor Tang of early China was the first person who promoted the growth of sugarcane.
Hence, the word for sugar in Chinese today is “Tang”.
The highest sugar futures price was during the world wars and some of the lowest sugar futures price was during natural disasters or monsoons. Over the past sugar was raised in price in the 1820’s mainly because of tariffs on its importing and the price was dropped later as soon as the tariffs were removed. The sweetener hit its lowest price in 1985, when sugar futures price was affected by the economy both globally and by the United States.
In today’s world sugar consumption is being reduced due to it being the main cause of obesity and health problems by over consumption. In correlation to diabetes there are changes occurring in the diets of most people around the world. Having artificial sweeteners in place due to diabetes, is also changing the way that it is being bought and sold as well.
This changes the outlook on dessert, soft drink, and juice companies and might be affecting sugar futures price eventually.