CJ Pack’s scientific contributions

As the current crop cycle progresses, another surplus is developing, adding to stocks built up in the three previous years, In response, the sugar market recently fell to its lowest levels for 11 years, before recovering somewhat. A keg player in developing surpluses is Brazil, where cane crops have expanded, but the use of hydrous ethanol to fuel cars is set to decline pushing more cane towards sugar production, A partially offsetting trend is seen in Russia, however, where the economic malaise is likely to seriously restrict production, resulting in increased demand. The price of sugar Futures has also been influenced by funds managers holding long positions throughout most of the last crop cycle, in the expectation of weather damage related to the El Nino phenomenon, This was reversed when it became clear that more crops were extremely good than were damaged, production estimates rose, and consumption in the Far East fell. Funds then sold long, to establish shorter positions. Futures prices are now firming once again, however.