Sugar Production Is About To Hit A 12-Year High

Sharapova at the Sugarpova product launch

Photo: Red Antler

The USDA’s latest report on domestic sugar stocks is bearish for prices.In other words, there’s gonna be a lot of sugar to go around.

The agency is projecting production for 2012/2013 to be 7.9 million tons, the most since 2000.

In the past 12 months, we’ve produced 7.6 tons.

Not surprisingly, prices are gonna go down plummeting: the agency says prices are likely to fall to levels in the high teens (so $0.15-$0.19 per pound), down from their current levels in the 20-cent level.

But U.S. prices are increasingly influenced by global prices, and the agency cautions that there remains some uncertainty — weather abroad in particular could change pricing models.

So what uses sugar sweetener (aka sucrose)?

  • Every sweet cereal you can think of
  • Ice cream
  • Ritz crackers

The full list is here.

SEE MORE — David Rosenberg’s epically depressing take on the global economy

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