Another commodity running- These underlining prices are the beginning of the future inflationary period we will see. Remember when these commodities value start to increase, basic food prices will surely rise at an alarming rate.
The price of raw sugar has increased to its highest level since March 1981, as supply concerns grow.
Raw sugar futures added 3% on Monday, to 21.55 cents a pound.
"The main problem is a deficit in sugar supplies," said Nick Penney, a trader with Sucden Financial, a firm that focuses on sugar trading.
Growing demand in Brazil for sugar to be turned into ethanol, coupled with a sharp fall in Indian production, have both prompted worries, he explained.
Sugar production in India for 2008-09 fell 45% year-on-year, according to a report by Sucden.
And a "drastic fall" is expected for the coming Indian crop, it said.
India had less rain in the monsoon season and it was also uneven, damaging a number of agricultural crops.
There are concerns that the pending sugar crop, which will be ready around November, will be inadequate.
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